The Gumusut-Kakap semi-submersible floating production system (pic) is on a 25-year lease.
KUALA LUMPUR : MISC Bhd
has provided more details on its plan to acquire the remaining 50% stake in the Gumusut-Kakap semi-floating production system from Petronas Carigali Sdn Bhd for US$445mil (RM1.85bil) cash consideration.
In a reply to a query by Bursa Malaysia Securities, MISC explained on Tuesday the basis of determining its purchase price for the 50% equity interest in Gumusut-Kakap Semi-Floating Production System Ltd (GKL) from E&P Venture Solutions Co Sdn Bhd (EPV), a unit of Petronas Carigali.
“As the proposed acquisition now entails less risk to MISC, the purchase consideration is higher than EPV's original cost of investment of US$305.7mil in 2012. The consideration of US$445mil was determined based on negotiations between MISC and EPV on a willing-buyer willing-seller basis,” it said.
It added that the lease agreement secured by GKL contains confidentiality provisions which prohibit the disclosure of its terms to third parties.
According to MISC, the semi-floating production system is already in operation and chartered on a long term lease, with fixed charter hire, to GKL's client for oil production at the Gumusut-Kakap field.
Hence, it represents a secured income stream for the tenure of the lease agreement, it explained.
“As such, GKL is not expected to be affected by the fluctuations in oil prices, including the current low oil price environment,” it said.
MISC values its current 50% shareholding in GKL at RM2.77bil based on GKL's audited financial statements for the financial year ended Dec 31, 2015 (FY15), it stated to Bursa Malaysia.
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