Coastal Contracts joint venture company in Mexico, Coastoil Dynamic S.A. De C.V. has recently signed an addendum to the earleir contract with Petroleos Mexicanos, Mexican state-owned petroleum company which will see the group add another RM113.4 million to its agreement.
Under the Addendum, Pemex has agreed to increase the unit price for the gas sweetening services of the Contract to compensate CD for the expansion of plant capacity from 150 mmscfd to 180 mmscfd since November 2021. Consequently, the maximum contract value has increased to MXN1.64 billion (equivalent to RM371.8 million) from MXN1.30 billion (equivalent to RM258.7 million) representing an increase of MXN0.34 billion and RM113.1 million respectively.
The Contract is expected to contribute positively to the earnings and net assets of the Company for the financial year ending 30 June 2023 and the financial periods thereafter.6. Statement by Directors
The Board of Directors of the Company is of the opinion that the acceptance of the Contract is in the best interest of the Company.