MISC Berhad enters Thai offshore market via Chevron FSO lease
- Business & Finance
MISC Berhad, Malaysian maritime solutions and services provider, has made first steps towards Thailand’s offshore oil and gas market via a floating, storage and offloading (FSO) vessel lease and operations contract with Chevron Offshore Thailand Limited (COTL).
MISC said on Tuesday that its wholly-owned subsidiary, MISC Offshore Floating Terminals (MOFT), signed a contract for the lease and operation of an FSO vessel for the Benchamas 2 project in the Gulf of Thailand.
The company stated that the contract was secured through an international competitive bidding process and marks MISC’s maiden foray into Thailand’s offshore oil and gas market. It is valued at approximately $230 million for a duration of 10 years with up to 5 extensions of one year each.
The scope of the work for MOFT includes engineering, procurement, construction, installation, commissioning, lease and operations of the FSO Benchamas 2 Project which is expected to start operations by the second quarter of 2018.
MISC’s President and CEO, Yee Yang Chien said: “This is a milestone achievement for MISC in winning the contract, and it is significant to us, being our first collaboration with Chevron in the offshore segment.
“We are honored for the trust and opportunity given to MISC for us to work together with Chevron towards the development and sustainability of Thailand’s oil and gas sector.”
Areepong Bhoocha-oom, Thailand’s Permanent Secretary of the Ministry of Energy, said: “I would like to congratulate Chevron and its partners on another impressive milestone in their mission to enhance Thailand’s long-term energy security. I am pleased that the advanced technology and safety upgrades of the vessel will help ensure continuity of petroleum production for the Thai people.”
Pairoj Kaweeyanun, President of COTL, said: “We truly appreciate the support and cooperation of the Thai government over the past 53 years. This significant investment on the FSO replacement is a testament to Chevron’s commitment to supply long-term, safe and reliable energy for the Kingdom of Thailand.”
Yee Yang Chien added: “Through this project, we aim to contribute towards mutually developing and strengthening MISC’s as well as our business partner’s position in the ASEAN (Association of Southeast Asian Nations) region’s oil and gas industry.”