MISC bags RM925mil contract in first foray into Thailand

Offshore oil rig Gumustu Kakap - MISC

KUALA LUMPUR: US oil giant Chevron has awarded a US$230mil (RM925.8mil) contract to MISC Bhd’s unit MISC Offshore Floating Terminals (L) Ltd for the lease and operations of a floating, storage and offloading vessel (FSO) in the Gulf of Thailand.

The energy shipping firm, which is a subsidiary of Petroliam Nasional Bhd, told Bursa Malaysia that it secured the deal through a competitive bidding and this marked MISC’s maiden foray into Thailand’s offshore oil and gas market.

MISC said the contract with COTL was for a duration of 10 years, with COTL having the right to extend for up to five extensions of one year each.

Chevron’s unit Chevron Offshore (Thailand) Ltd (COTL) is leasing the vessel for the FSO Benchamas 2 Project.

The Bangkok Post last week reported Steve Green, president of Chevron Asia Pacific Exploration and Production, as saying Chevron and its partner planned to spend up to 100 billion baht (RM11.6bil) in the Gulf of Thailand this year despite the relatively low oil prices.

MISC Offshore Floating Terminals (L) Ltd was incorporated in Malaysia and is principally involved in owning and leasing of offshore, floating, production and offloading terminals.

MISC said the contract did not have any effect on its issued and paid-up share capital and substantial shareholders’ shareholding in the company.

The contract is also not expected to have any material impact to the earnings per share, gearing and net assets per share of the MISC group for the financial year ending Dec 31, 2016.

MISC shares edged up 1 sen to close at RM7.53 on Tuesday with 935,600 shares changing hands.