The 16-year charter contract is part of sale and leaseback deal between MISC and Hess which saw MISC acquiring ownership of the FSO.
The investment is consistent with the MISC2020 strategy which aims to achieve a sustainable level of secured profit by year 2020, MISC said in a press release.
MISC has been exploring opportunities to diversify its profit streams across all business segments, including acquisition of assets that are able to give the company secure and sustainable income.
“Under the MISC2020 strategy, the game plan for Offshore Business includes pursuing acquisition opportunities in the domestic and international market,” said president and group ceo Yee Yang Chien.
Read More: MISC to invest $4bn as potential seen in FPSOs, shuttle tankers
“The steady oil price recovery in recent months and renewed interest in growth opportunities have led to an increase of activities in the offshore segment. This makes good sense for us to take advantage of this by growing our portfolio of offshore assets through this acquisition which will support our ability to sustain profit in the long term,” he added.
This FSO will join MISC’s fleet of offshore floating facilities, which now comprises seven FSOs, six floating production, storage and offloading (FPSO) facilities, two mobile offshore production units (MOPUs) and one semi-submersible floating production system, bringing the total to 16 assets. This will further strengthen MISC’s position as one of the leaders in the offshore segment, capable of operating in marginal and deepwater fields at various locations including Brazil, Vietnam, Thailand and Malaysia.
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