• 16 May Update on TRANSPORT AND INSTALL MALIKAI TENSION LEG PLATFORM. 
  • Barring any unforeseen circumstances and subject to risks associated  in  the execution of the Project, the Project is expected to have a  positive impact on the net tangible assets or earnings per share  of the Group for the current financial year ending 31 December 2016.       
• From the Q1 report
  1. The site execution of Malikai Tensioned Leg Platform, which is scheduled to commence in May 2016, will contribute significant revenue to the OES in FY2016 
  2. The launch of the new generation of patent-pending marine growth prevention products as a low-cost solution to add strength and life to the market of over 10,000 offshore platforms will start in the second quarter of 2016 (&ldquo 2Q2016&rdquo ).  The Group has been awarded a number of contracts for its proprietary &ldquo ocean-powered&rdquo Marine Growth Control products, which will contribute significant gross profit to OES from 2Q2016, as the Group begins to supply MGP for these contracts.   
     • 4 May announcement  :  IEV SECURES FIVE NEW CONTRACTS UNDER ITS MARINE GROWTH CONTROL BUSINESS UNIT (&ldquo MGCBU&rdquo ) VALUED AT AN AGGREGATE OF APPROXIMATELY USD2.9 MILLION
  3. the land dispute case related to  EJ-1  operation is currently being heard by the Courts of Bekasi and is expected to conclude during 2Q2016.
     • IEV Gas&rsquo claim is for at least IDR 25.2 billion (approximately USD1.82 million based on an exchange rate of IDR 13,857 to USD 1.00) for (i) loss and damage (ii) material and associated costs and (iii) other related losses.
  4. The construction of the CNG Mother Station in the East Coast of Peninsular Malaysia is ongoing. All major equipment factory acceptance tests have been completed and site installation is expected to commence in May 2016. Barring any unforeseen circumstances, the new supply chain is expected to be operational in 2Q2016. Meanwhile, Gas Malaysia IEV Sdn Bhd has identified a number of customers in the West Coast and is working towards completing the feasibility study for its second mobile natural gas supply chain in Malaysia.
  5. PT. IEV PABUARAN KSO SPUDS GAS BEARING FORMATION CLS-1 AND CLS-1TW IN CILAMAYA STRUCTURE
     • The Group is also exploring a strategy for the vertical integration of its West Java gas operation to enhance its competitive advantage and diversify its customer base from industrial to power generation and transport sectors, taking advantage of the gas source from the KSO
  6. A feasibility study on the production of  nanosilica  from rice husk by the Group is ongoing. If successful, this could alleviate the risks associated with elevated husk price due to declining rice production as husk price represents a relatively small cost component in the production of  nanosilica. This strategy will also enable the Group to diversify from the energy market as  nanosilica  has applications in a wide range of industries.
  7. The Group has responded to an increased number of decommissioning  enquiries  and tenders from operators who are leveraging the low oil price environment to minimize their decommissioning costs. Additionally, the grouting team has completed a number of pile grouting and free span correction projects in India and currently pursuing similar projects for the next offshore campaign that will start in October 2016. 

  The site execution of Malikai Tensioned Leg Platform, which is scheduled to commence in May 2016, will contribute significant revenue to the OES in FY2016.

The offshore transportation and installation work for the Malikai Tension Leg Platform installation is scheduled to start in mid-May 2016 and, barring any unforeseen circumstances, the program is scheduled for completion by July 2016

A feasibility study on the production of nanosilica from rice husk by the Group is ongoing. If successful, this could alleviate the risks associated with elevated husk price due to declining rice production as husk price represents a relatively small cost component in the production of nanosilica. This strategy will also enable the Group to diversify from the energy market as nanosilica has applications in a wide range of industries. 

The Group is also exploring a strategy for the vertical integration of its West Java gas operation to enhance its competitive advantage and diversify its customer base from industrial to power generation and transport sectors, taking advantage of the gas source from the KSO.

The management of PT. IEV Gas is implementing a number of cost-reduction-initiatives in 2Q2016 to prepare for the challenges of low CNG sales volume and margin pressure. The business performance is expected to improve once crude oil prices starts to recover and/or the Group can implement its vertical integration plan and tap into the natural gas produced from Pabuaran KSO. Meanwhile, the land dispute case related to EJ-1 operation is currently being heard by the Courts of Bekasi and is expected to conclude during 2Q2016. The construction of the CNG Mother Station in the East Coast of Peninsular Malaysia is ongoing. All major equipment factory acceptance tests have been completed and site installation is expected to commence in May 2016. Barring any unforeseen circumstances, the new supply chain is expected to be operational in 2Q2016. Meanwhile, Gas Malaysia IEV Sdn Bhd has identified a number of customers in the West Coast and is working towards completing the feasibility study for its second mobile natural gas supply chain in Malaysia. On the LNG front, the Singapore LNG feasibility study is ongoing. For the Tamil Nadu LNG project, the Group has approved the 2nd Module (detailed) of the market study, as results from the 1st Module (overview) were very encouraging. The 2nd Module will take approximately 120 days to complete. Details on these projects will be disclosed as they materialize. 

The Group has been awarded a number of contracts for its proprietary &ldquo ocean-powered&rdquo Marine Growth Control products, which will contribute significant gross profit to OES from 2Q2016, as the Group begins to supply MGP for these contracts. The Group will also commence a global launch of its new generation of patent pending products from 2Q2016. The Group has commissioned design consultants to conduct an extended marine growth prevention sensitivity study for a number of structures in Asia and the Middle East to determine how the differing scope of marine growth prevention can impact the strength and life of offshore installations. Barring any unforeseen circumstances, results of this study will be announced together with the launch of new products in 2Q2016. The Group has responded to an increased number of decommissioning enquiries and tenders from operators who are leveraging the low oil price environment to minimize their decommissioning costs. Additionally, the grouting team has completed a number of pile grouting and free span correction projects in India and currently pursuing similar projects for the next offshore campaign that will start in October 2016. The offshore transportation and installation work for the Malikai Tension Leg Platform installation is scheduled to start in mid-May 2016 and, barring any unforeseen circumstances, the program is scheduled for completion by July 2016.