KUALA LUMPUR (Feb 19): MISC Bhd (KL:MISC) has secured a long-term bareboat charter, and operations and maintenance contracts for Papua New Guinea’s first floating storage and offloading (FSO) unit.
In a statement, MISC said it received the contracts from Exxon Mobil Corporation subsidiary ExxonMobil PNG Ltd, which is the operator of the PNG LNG (liquefied natural gas) project.
The contracts comprise a firm 15-year charter with extension options of up to an additional 15 years. The group said the award marks its maiden entry into Papua New Guinea.
The proposed value of the contract was not disclosed.
“Following our strategic entry into Brunei with the Kelidang FPU (floating production unit) project, this venture continues our momentum in pushing boundaries and entering new markets,” said MISC president and group chief executive officer Zahid Osman.
The FSO will be deployed at the Kumul Marine Terminal as part of the Kutube Pipeline System and will serve as an offshore floating facility for the storage and offloading of liquid hydrocarbons, including crude oil and condensate, produced from various fields. MISC said associated gas will be channelled to the PNG LNG project.
The PNG LNG project has a production capacity of more than 8.3 million tonnes per annum. ExxonMobil PNG Ltd holds a 33.2% participating interest in the project, alongside Santos Ltd (39.9%), ENEOS Xplora Inc (4.7%), Kumul Petroleum Holdings Ltd (19.4%) and Mineral Resources Development Company Ltd (2.8%).
According to MISC, the FSO will have a 30-year operational lifespan and a minimum storage capacity of 800,000 barrels. It is scheduled for deployment in the first half of 2028 and will be capable of handling condensate for potential future projects.
MISC said the project will be delivered using the group’s integrated capabilities, including the engineering and construction expertise of Malaysia Marine and Heavy Engineering Holdings Bhd, its marine and heavy engineering arm.
At the time of writing on Thursday, shares of MISC were up one sen or 0.12% to RM8.26. At its last price, the group has a market value of RM36.9 billion.