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Marine Log

January 2, 2008

New offshore fab yard for Malaysian east coast

Two Malaysian companies have entered a joint venture to establish and operate an offshore and marine fabrication yard in the State of Terengganu on Malaysia's east coast, to be known as Terengganu Fabricators Sdn Bhd ("T-Fab").

The joint venture is a 60:40 arrangement between Eastern Pacific Offshore Fabrication Sdn Bhd, a wholly owned subsidiary of Eastern Pacific Industrial Corporation Berhad, and Offshore Construction & Engineering Sdn Bhd, a wholly owned subsidiary of Offshoreworks Sdn Bhd.

The agreement is conditional among other things on successful completion of an Environmental Impact Assessment of the project site and acquisition by Eastern Pacific Offshore Fabrication of the lands comprising the Project Site;

T-Fab will establish, maintain, operate and manage an offshore and marine major fabrication yard at the site and will undertake oil and gas engineering and construction completion of offshore structures such as topside, jacket , platform, modules and the like along with marine vessel constructions and repairs

The project follows the successful acquisition by Eastern Pacific Industrial Corporation of a 70% equity interest in Mushtari Engineering Trading Sdn Bhd ("MET"), which was completed in October 2007. MET is involved in minor fabrication, mechanical and civil engineering works.

The project is also in line with the recent launch of the East Coast Economic Region, which earmarked the Kemaman area for boat building an repairs and heavy industries.