KUALA LUMPUR: MISC Group’s (MISC) recent contract wins marking its maiden entry into Papua New Guinea (PNG) will provide the group with substantial long-term revenue visibility.
In a statement today, the energy shipping group said this directly supports its delivering progress strategy under the Resilient Core pillar that focuses on securing sustainable, quality earnings and future-proofing the group’s portfolio.
On Feb 10, MISC Bhd announced it has secured long-term bareboat charter as well as operations and maintenance (O&M) contracts with ExxonMobil PNG Ltd (EMPNG), a subsidiary of Exxon Mobil Corporation.
These contracts comprises a firm 15-year charter with extension options of up to an additional 15 years, and the floating storage and offloading (FSO) unit is expected to begin operations in the first half of 2028.
MISC’s President and Group Chief Executive Officer, Zahid Osman, said this venture continues the group’s momentum in pushing boundaries and entering new markets following their strategic entry into Brunei with the Kelidang floating production unit project.
“It demonstrates our commitment to supporting our partners and host nations to responsibly monetise their resources for long-term development. This venture is more than a contract; it is about laying a foundation for the future.
“It also reflects our delivering progress strategy in action – entering new frontiers with a world-class partner to deliver sustainable infrastructure that will serve a nation for decades to come,” he said.
This FSO to be operated under the contracts with EMPNG will be PNG’s first offshore floating facility and will be deployed at the Kumul Marine Terminal as part of the Kutubu Pipeline System.
“It will play a critical role in the storage and offloading of liquid hydrocarbons, including crude oil and condensate, produced from various fields, while the associated gas is fed into the PNG LNG Project,” MISC said.
The FSO will have a 30-year operational lifespan and a minimum storage capacity of 800,000 barrels. Its specifications include the capability to handle condensate for prospective future projects. – BERNAMA
