MISC Berhad Enters Thai Offshore Oil & Gas Market

MISC Berhad ("MISC"), one of the world's leading energy related maritime solutions and services provider has made inroads into Thailand's offshore oil and gas market for the first time.

Today, MISC's wholly-owned subsidiary, MISC Offshore Floating Terminals (L) Limited ("MOFT") signed the contract for the lease and operations of a Floating, Storage and Offloading Vessel ("FSO") for the FSO Benchamas 2 Project by Chevron Offshore (Thailand) Ltd. ("COTL") in the Gulf of Thailand.

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 USD230 million for a duration of 10 years with COTL having the right to extend for up to 5 extensions of one year each.             

As part of the contract, the scope of work for MOFT includes engineering, procurement, construction, installation, commissioning, lease and operations of the FSO Benchamas 2 Project which is expected to commence operations by the second quarter of 2018.

MISC's President / Chief Executive Officer, Mr. Yee Yang Chien said that the contract reflects the confidence of its business partners in MISC's capability and reliability.

"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. With our broad spectrum of energy related maritime solutions and services, be it in energy shipping or offshore solutions, MISC is confident of our ability to serve the various needs of the global oil and gas industry. 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 & gas sector."

"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," said Dr. Areepong Bhoocha-oom, Permanent Secretary of the Ministry of Energy, Thailand.

"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," said Mr. Pairoj Kaweeyanun, President of Chevron Offshore Thailand, Ltd.

Mr. Yee Yang Chien added:

"MISC is committed to our role in moving energy to build a better world. We leverage on our strong track record in delivering projects successfully as well as fostering trust and relationships with our customers in the long term to fulfill our aspirations. 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 region's oil and gas industry."

MOFT was incorporated in Malaysia and is principally involved in owning and leasing of offshore, floating, production and offloading terminals.

COTL is a company incorporated in Thailand and is primarily involved in oil and gas exploration and production businesses.

Mr. Pairoj Kaweeyanun, President of Chevron Offshore Thailand, Ltd. and Tuan Syed Hashim Syed Abdullah, Vice President Offshore Business of MISC Berhad after the signing of agreement between Chevron Offshore (Thailand) Ltd. and MISC Offshore Floating Terminals (L) Limited.

The signing of the agreement took place at the Miracle Grand Convention Hotel, Bangkok. MISC was represented by Tuan Syed Hashim B. Syed Abdullah, Vice President Offshore Business Unit and COTL was represented by Mr. Pairoj Kaweeyanun, President of Chevron Offshore (Thailand) Ltd.