MISC Group, a Malaysia-based maritime energy services provider, has secured contracts to deliver and operate Papua New Guinea’s (PNG) first floating storage and offloading (FSO) unit.
The company signed long-term bareboat charter and operations and maintenance agreements with ExxonMobil subsidiary ExxonMobil PNG, which is the operator of the PNG liquefied natural gas (LNG) project.
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The contracts mark MISC Group’s entry into the country.
The charter is set for 15 years with options to extend for a further 15 years, and the FSO is scheduled for deployment at the Kumul Marine Terminal in the first half of 2028 to support the Kutubu Pipeline System.
The FSO will store and offload liquid hydrocarbons such as crude oil and condensate produced from various fields. Gas associated with these fields will continue to feed into the PNG LNG Project.
The planned FSO will have an operational life of 30 years and a minimum storage capacity of 800,000 barrels (bbl). It will be equipped to handle condensate from possible future projects in PNG.
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By GlobalDataMISC Group president and CEO Zahid Osman said: “Securing Papua New Guinea’s first-ever FSO is a significant milestone for MISC and marks another chapter in our long-standing 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 [floating production unit] 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. This venture is more than a contract; it is about laying a foundation for the future.”
The PNG LNG project produces more than 8.3 million tonnes of LNG per annum and includes participation from ENEOS Xplora, Santos, Mineral Resources Development Company and Kumul Petroleum Holdings.
MISC Group plans to use its internal capabilities, including support from Malaysia Marine and Heavy Engineering Holdings Berhad (MHB), to deliver this project. The contracts give MISC Group extended revenue opportunities and expand its offshore portfolio as part of its Delivering Progress strategy.
