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MISC gets five LNG carrier newbuilding deals back from Petronas

MISC gets five LNG carrier newbuilding deals back from Petronas
Suggesting that all is well at home again, Malaysian national oil company Petronas has transferred shipbuilding contracts for five newbuilding LNG carriers woth $1.1bn at Hyundai Heavy Industries to its shipping unit MISC and also entered into a 15+5-year time charter for the vessels.

MISC said in a stock market release that its major shareholder Petronas had undertaken a novation agreement for the construction and delivery of the newbuilding of the vessels. Petronas had previously said it would directly source LNG carrier newbuildings to cut costs, raising concern for the fate of MISC, which is highly dependent on its parent for work.

“The newbuild LNG carriers are expected to be delivered to MISC from September 2016 to December 2017. The transaction will involve an expenditure of approximately $1.1bn” it said.

Concurrently, MISC said Petronas had also agreed to extend the charter of five refurbished Puteri Class LNG carriers on a time charter basis for another 10 years for each refurbished LNG Carrier. It said the respective charters will be from September 2015 to September 2017.