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MISC seals $441m long-term FSO contract from HessMISC seals $441m long-term FSO contract from Hess

MISC has secured a $441m long-term bareboat charter contract from Hess Exploration and Production Malaysia for the lease of the FSO Mekar Bergading floating, storage and offloading facility (FSO).

Vincent Wee, Hong Kong and South East Asia Correspondent

July 6, 2018

1 Min Read
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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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About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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