SBM Offshore and MISC Berhad Ink Share Purchase Deals for Two FPSOs
September 6, 2024
SBM Offshore has signed two share purchase agreements with its partner MISC Berhad related to two floating production storage and offloading (FPSO) units.
Under the agreement, SBM Offshore will acquire MISC Berhad’s entire effective equity interest in the lease and operating entities related to the FPSO Espirito Santo in Brazil.
SBM Offshore is the majority owner of the lease and operating companies related to FPSO Espirito Santo with 51% equity ownership, together with MISC Berhad with 49% equity ownership.
On the other hand, SBM Offshore will fully divest to MISC Berhad its effective equity interest in the lease and operating entities of the FPSO Kikeh in Malaysia.
MISC Berhad is a partner in the vessel owner Malaysian Deepwater Floating Terminal (Kikeh) - MDFT, together with SBM Holdings (SBM). MISC and SBM own 51% and 49% of the equity in MDFT, respectively.
According to SBM offshore, the transaction furthers its efforts to maintain focus and excellence in its operating portfolio.
Agreements remain subject to several conditions precedent and approval by various competent authorities.
To remind, late in 2020, SBM Offshore signed an agreement with its client Shell for a five years’ extension for the lease and operate contracts of the FPSO Espirito Santo located in Brazil.
The Espirito Santo FPSO is used by Shell on the Parque das Conchas complex on BC-10 in Campos Basin offshore Espirito Santo state.
The end of the contractual lease and operate period was extended from December 2023 to December 2028.
As for the FPSO Kikeh, is the first and largest deepwater FPSO in Malaysia and Asia as well, and can produce 120,000 barrels of oil per day and has a storage capacity of two million oil barrels.
PTTEP Sabah Oil, a Malaysian subsidiary of the Thai oil company PTTEP, awarded a six-year contract extension for the FPSO Kikeh, operating in deep waters offshore Sabah, Malaysia, in January 2022.
The charter extension starts in January 2022 and ends in January 2028. The FPSO Kikeh is located in Block K, offshore Sabah, Malaysia. PTTEP acquired the asset from Murphy Oil in 2019.
