KUALA LUMPUR (Sept 6): MISC Bhd (KL:MISC) has agreed with Netherlands-based floating production storage and offloading (FPSO) operator SBM Holding Inc to exchange ownership interests on two FPSO vessels.
Under the arrangement, MISC, through its wholly owned indirect subsidiary MISC OBU One (L) Pte Ltd, will acquire the 49% equity interests in Malaysian Deepwater Floating Terminal (Kikeh) Ltd (MDFT) and Malaysian Deepwater Production Contractors Sdn Bhd (MDPC) each.
MDFT and MDPC are joint venture companies set up for the purpose of owning, chartering and operating FPSO Kikeh in Malaysia. Upon completion of the acquisition, both companies will become wholly owned subsidiaries of MISC.
The FPSO was built in 2007 and was the first and largest deepwater FPSO in Malaysia and Asia as well
"The proposed transactions are in line with MISC’s initiative to streamline business activities by having full operational control of strategic assets within its portfolio," the group said in a bourse filing on Friday.
On the other hand, MISC, through its wholly owned indirect subsidiary MISC Offshore Holdings (Brazil) Sdn Bhd, is disposing of the 49% equity interests each in Brazilian Deepwater Production BV (BDPBV), Brazilian Deepwater Production Contractors Ltd (BDPC), Brazilian Deepwater Production Ltd (BDPL), and Brazilian Deepwater Floating Terminals Ltd (BDFT) to SBM.
All the four companies are joint venture companies set up for the purpose of constructing, owning, chartering and operating FPSO Espirito Santo in Brazil. Upon completion of the divestment, the four companies will cease to be joint venture companies of MISC.
MISC, however, did not disclose the price of the deals.
MISC, 51%-controlled by Petroliam Nasional Bhd (Petronas), is the Malaysian national oil company’s transport arm. The group is also among the world’s largest FPSO owners and operators, with 12 assets. On top of that, it has more than 100 vessels.
As at end-March this year, MISC’s total assets were pegged at RM66.6 billion.
Shares of MISC were down 36 sen or 4.35% to close at RM7.92 on Friday, giving the group a market capitalisation of RM35.35 billion.