PRESS RELEASE IN CONJUNCTION WITH ASSAR SENARI’S IOT AND PALM OIL REFINERY AWARD AND FUNDING AGREEMENTS SIGNING CEREMONY ON 27TH JUNE 2005

Kuching - The signing ceremony in relation to Project Award and Funding Agreements for ASSAR Senari Group’s two (2) main projects in Senari; The Independent Oil Terminal (IOT) and Palm Oil Refinery is witnessed by the Chief Minister of Sarawak YAB Pehin Sri (Dr.) Haji Abdul Taib B. Mahmud at Crowne Plaza Riverside Hotel, Kuching, this morning. Besides these 2 projects, today’s ceremony will also include the signing of funding agreement for the Oil and Gas jetty, that serves the two plants.

The IOT and the Palm Oil refinery situated adjacent to each other are presently under construction and expected for completion in October 2006. As part of the infrastructure requirement, ASSAR Senari in collaboration with Kuching Port Authority is constructing an Oil & Gas jetty to serve the 2 main plants and this jetty is expected to be completed in August this year.

The IOT project’s main construction package was awarded to the successful bidder, Chiyoda/PPES Works Joint Venture. Chiyoda (Malaysia) is a member of the Japanese conglomerate, Chiyoda Corporation, a global engineering company specializing in hydrocarbon and chemicals industry.

Its joint-venture partner in the project is PPES Works (Sarawak) Sdn Bhd, a leading Sarawak-based construction company and member of the Cahya Mata Sarawak Group of Companies. This strategic partnership between PPES Works and Chiyoda in the construction of ASSAR Senari’s IOT could well become an entry ticket for PPES Works to actively participate in other Oil and Gas projects, not only in Malaysia but also internationally.

These two projects including the oil and gas jetty are estimated to cost RM 300 million and undertaken in collaboration with its project partners; PETRONAS and Shell for the IOT, Cargill and Salcra for the Palm Oil refinery. The signing ceremony today also saw the sealing of financing agreements between ASSAR Senari Group of companies with RHB group for the projects.

RHB Group, the third largest financial services group in Malaysia, was represented by RHB Sakura Merchant Bankers Berhad, RHB Bank Berhad and RHB Islamic Bank Berhad. Combined, the three RHB companies have successful offered to raise financing for both projects through a mix of funding instruments of Serial Sukuk Musyarakah (“Sukuk”), Fixed Rate Term Loan Facility, Multi-Trade Lines Facility and Bai Al-Istisnal/Ijarah Financing Facility.

In addition, the Malaysian Rating Corporation Berhad (MARC) has assigned a prestigious AAA IS long-term credit rating to ASSAR Chemicals Sdn Bhd’s Sukuk whch will be issued to part finance the project. The AAA IS rating indicates an extremely strong ability to make payment on the instrument issued under the Islamic asset-based financing contract. The Sukuk, which applies the Syariah principle of Musyarakah or profit and loss sharing, will be issued in 8 series with maturities of between 3 to 10 years.

The IOT and the Palm Oil Refinery projects are two strategic projects as part of Kuching city’s development master plan. The IOT project is in line with the plan to relocate the existing Petroleum terminal facilities from Bintawa to a more suitable place adjacent to Kuching deep water port at Senari. This relocation could contribute positively to the environment, safety and wellbeing of residents at the surrounding areas.

With the Palm Oil refinery operational in Kuching, it is expected to save transportation cost of nearly RM 20 million a year for more than 18,000 smallholders, commercial planters and millers in Southern Sarawak. This saving is derived from comparison with the current practice of sending crude palm oil and palm kernel to similar facilities of nearly 700 kilometers away in Bintulu.

The success of ASSAR Senari in implementing these projects could also be replicated elsewhere in the Sarawak by using its smart business concepts and with the support from its partners.

Present at this ceremony were the Deputy Chief Minister Datuk Patinggi (Dr.) Alfred Jabu, other State Ministers and Assistant Ministers. Also present were Chairman of ASSAR Group of Companies – Tan Sri Datuk Amar Hj. Bujang Mohd Nor, together with CMS Group Chairman and Executive Chairman of RHB Capital Berhad, Dato Sri Sulaiman Abdul Rahman Taib and Chairman of PPES Works, Y.B. Datuk Hj. Talib Zulphilip.

At the signing, ASSAR Senari Group was represented by its CEO - Tuan Syeed Mohd Hussien Wan Abdul Rahman meanwhile Chiyoda/PPES Works JV were represented by Managing Director of Chiyoda Malaysia, Masatake Shinsenji and Executive Director of PPES Works, Jamel Ibrahim. Meanwhile RHB Sakura was represented by its Chairman, Abdullah Mat Noh, RHB Bank by its CEO, Michael J. Barret and RHB Islamic Bank by its Chairman, Vaseehar Hassan Abdul Razack.

En. Mohd Asri Awang, CEO of MARC, also presented the AAA IS rating plaque for the Sukuk to Tan Sri Datuk Amar Hj. Bujang Mohd Nor, Chairman of ASSAR Group of Companies, at the function in the presence of the Sarawak Chief Minister.

Note : Translation of Technical Words

Oil & Gas - Minyak dan gas

Palm Oil Refinery - Kilang penapis minyak kelapa sawit mentah

Independent Oil Terminal -Terminal Minyak Bebas