KUALA LUMPUR: Dagang Nexchange Bhd
(DNeX) has proposed to dispose of its floating production storage and offloading (FPSO) vessel, Excalibur, to MISC Bhd for US$35mil (RM142.2mil) cash.
In a filing with Bursa Malaysia, DNeX said its 90%-owned Ping Petroleum Ltd's wholly-owned subsidiary Ping Petroleum UK PLC had entered into a memorandum of agreement with MISC for the proposed disposal.
The proposed disposal is expected to generate a pro forma gain of US$5.86mil, or RM23.81mil, after taking into account capital gains tax and the recovery of capital allowances previously claimed.
DNeX said Excalibur has a net book value of US$13.25mil, or RM53.83mil. An independent valuation by ABS Consulting placed the vessel's fair value at between US$22.5mil and US$43.5mil.
The 2007-built FPSO, which has a design capacity of 300,000 barrels, is currently laid up at the Port of Nigg in Scotland.
Under the agreement, MISC will pay a US$3.5mil deposit within three days of signing, while a US$2.5mil booking fee had already been paid in April.
The vessel is to be delivered to MISC by Nov 5, 2026, at Malaysia Marine Heavy Engineering's quayside in Pasir Gudang, Johor. MISC will arrange and bear the cost of transporting the vessel to Malaysia.
DNeX said the disposal represents a “prudent and proactive strategic decision” in view of the evolving fiscal, regulatory and development landscape in the UK offshore energy sector.
It said UK policy increasingly encourages new developments to be tied back to existing, larger infrastructure, reducing the commercial attractiveness of Excalibur's originally intended deployment.
“This divestment enables the group to optimise capital allocation and preserve value by avoiding the costs and potential value erosion associated with an extended warm-stacked period,” DNeX said.
The group expects net cash proceeds of US$14.11mil from the transaction after settling tax obligations, which will be used for working capital.
The transaction does not require shareholder or regulatory approval and, barring unforeseen circumstances, is expected to be completed by the fourth quarter of 2026.
