MISC secures RM1.8b charter contract

By TMR

MISC Bhd has secured a longterm charter contract worth US$441 million (RM1.78 billion) from Hess Exploration and Production Malaysia BV that will commence on Sept 1, this year.

In a filing to Bursa Malaysia last Friday, the energy-based logistics group noted it has signed a a 16-year contract with Hess for the lease of a floating, storage and offloading facility (FSO) known as FSO Mekar Bergading on a bareboat basis.

The contract is pursuant to a sale and charter agreement in respect of the FSO between Hess and MISC.

Hess, a company incorporated in the Netherlands, is a global independent energy company engaged in the exploration and production of crude oil and natural gas.

MISC said the FSO is the latest addition to its fleet of offshore floating facilities, which now comprises seven FSOs, six floating production, storage and offloading facilities, two mobile offshore production units and one semi-submersible floating production system, bringing the total to 16 assets.

MISC’s shares closed at RM5.92 last Friday, down seven sen, giving it a market capitalisation of RM26.43 billion.