MISC makes its first foray into Papua New Guinea with ExxonMobil’s FSO deals

February 19, 2026, by Melisa Cavcic

MISC, Malaysia’s owner and operator of offshore floating and energy-related maritime solutions and services, has signed on the dotted line with ExxonMobil PNG (EMPNG), a subsidiary of the U.S.-based energy giant ExxonMobil, for a new floating storage and offloading (FSO) unit, which is destined to work at a liquefied natural gas (LNG) project located in Papua New Guinea, Oceania.

MISC has confirmed its maiden entry into Papua New Guinea, thanks to long-term bareboat charter and operations and maintenance contracts for a new FSO with ExxonMobil, which is the operator of the PNG LNG project with a production capacity of more than 8.3 million tonnes per annum (mtpa).

These deals, encompassing a firm 15-year charter with extension options of up to an additional 15 years, will provide the Malaysian player with substantial long-term revenue visibility, directly supporting its ‘Delivering Progress’ strategy by focusing on securing sustainable, quality earnings and future-proofing the firm’s portfolio.

Zahid Osman, President & Group CEO of MISC, commented: “Securing Papua New Guinea’s first-ever FSO is a significant milestone for MISC and marks another chapter in our longstanding global partnership with ExxonMobil, a relationship built over many years across the shipping segments and now extending into the offshore segment.

“Following our strategic entry into Brunei with the Kelidang FPU project, this venture continues our momentum in pushing boundaries and entering new markets. It demonstrates our commitment to supporting our partners and host nations to responsibly monetise their resources for long-term development.”

The FSO, which is expected to be Papua New Guinea’s first offshore floating facility, will be deployed at the Kumul marine terminal as part of the Kutubu pipeline system, playing a critical role in the storage and offloading of liquid hydrocarbons, including crude oil and condensate, produced from various fields, while the associated gas fed into the PNG LNG project.

The FSO will feature a 30‑year operational lifespan and a minimum storage capacity of 800,000 barrels. Scheduled for deployment in the first half of 2028, the unit’s specification includes capabilities to handle condensate for prospective future projects, ensuring the asset remains integral to the nation’s energy landscape well into the future.

This project is operated by EMPNG, which holds a 33.2% participating interest, in partnership with Santos (39.9%), ENEOS Xplora (4.7%), Kumul Petroleum (19.4%), and Mineral Resources Development Company (2.8%).

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Osman explained: “This venture is more than a contract; it is about laying a foundation for the future. It also reflects our Delivering Progress strategy in action – entering new frontiers with a world-class partner to deliver sustainable infrastructure that will serve a nation for decades to come.

“We are privileged to play a pivotal role in supporting the PNG LNG project, reinforcing our position as a trusted global provider of sustainable maritime solutions.”