Six-year extension for ‘largest deepwater FPSO in Malaysia’

Malaysian energy and maritime solutions provider MISC Berhad announced that the Malaysian Deepwater Floating Terminal (Kikeh) Limited (MDFT) had recently entered into an agreement with PTTEP to extend a charter contract for the FPSO Kikeh, which is operating off Sabah, Malaysia.

MDFT is a joint venture company between MISC and SBM Holdings (SBM) with 51 per cent and 49 per cent of the equity, respectively.

As reported by MISC on Monday, the charter extension for the vessel is for six years, beginning January 2022 until January 2028.

FPSO Kikeh is located in Block K, offshore Sabah, Malaysia. Built in 1974 and converted in 2007, the FPSO is the first and largest deepwater FPSO in Malaysia and Asia as well, according to MISC. The FPSO can produce 120,000 barrels of oil per day and has a storage capacity of two million oil barrels.

Thailand’s PTTEP took over Block K from Murphy Oil in 2019 as part of a larger transaction worth about $2.1 billion, which included Murphy’s entire Malaysian business.

As part of the deal, PTTEP acquired five petroleum exploration and production projects – the Sabah K project, the SK309 & SK311 project, the Sabah H project, the SK314A project, and the SK405B project.

In related news, PTTEP and its partner Petronas late last year made a second gas discovery in Block SK417 from the Nangka-1 exploration well, located in shallow waters about 180 kilometres off the coast of Sarawak. PTTEP’s portfolio of major Malaysian projects entails the producing assets in Blocks K, SK309, SK311, the Rotan-Buluh field in Block H and the jointly operated gas fields with Petronas Carigali in Malaysia–Thailand Joint Development Area.