Petronas hand-picks FPSO for Asian hydrocarbon redevelopment project

March 2, 2026, by Melisa Cavcic

OceanSTAR Engineering, part of Singapore-headquartered OceanSTAR Elite group of companies, has secured a new deal with Petronas Carigali (PCSB), a subsidiary of Malaysia’s energy giant Petronas, for the provision of lease, operation and maintenance of a floating production, storage, and offloading (FPSO) unit.

A man looking at a large vessel at sea — Illustration; Source: Petronas

After Petronas added more work to Vantris’ existing transport and installation contracts for offshore facilities at the Sepat integrated redevelopment project and the Belud South greenfield development project, OceanSTAR Elite confirmed a long-term contract with the Malaysian giant, encompassing a 15-year firm charter period with extension options.

This deal is said to support the Sepat redevelopment project offshore Terengganu, Peninsular Malaysia. As a result, OceanSTAR will undertake the full engineering, procurement, construction, installation and commissioning (EPCIC) of a newbuild FPSO hull and all related topside facilities.

The hull is described as the third unit based on the firm’s AiP-approved standardized hull design, OSE GH200, developed under the ‘Design-One, Built-Many’ concept. The Asian player’s project team in Kuala Lumpur continues to work in close collaboration with the PCSB team to ensure successful project execution.

The FPSO is being developed for the Sepat field redevelopment in Block PM313 and will be a spread-moored unit operating in approximately 70 meters of water depth, capable of processing a minimum of 30,000 barrels of liquid per day.

OceanSTAR elaborates that the facility will be equipped with advanced gas injection, gas lift, and future water injection systems to ensure efficient and sustainable production. The project is currently in the detailed engineering phase, with critical long-lead equipment being secured.

OceanSTAR underlined: “This project represents one of the first new built FPSO developments contracted by Petronas for deployment offshore Malaysia, marking an important milestone in OceanSTAR’s continued growth and capability development.

“It reflects the company’s ability to deliver full-scope, integrated floating production solutions, covering the entire project lifecycle from design and construction through to long-term leasing, operation and maintenance.”