MISC has been awarded contracts to provide a newbuild floating storage and offloading vessel for ExxonMobil's operations in Papua New Guinea. This vessel will be the country's first offshore floating facility.

Deployment and Function

The FSO will be deployed at the Kumul Marine Terminal, which is part of the Kutubu Pipeline System. Its primary role will be the storage and offloading of liquid hydrocarbons, such as crude oil and condensate, produced from various fields. The associated gas from these fields serves as feedstock for the PNG LNG project.

Vessel Specifications and Significance

The vessel is designed with a 30-year operational lifespan and a minimum storage capacity of 800,000 barrels. It is scheduled for deployment in the first half of 2028 and includes specifications to handle condensate for potential future projects, ensuring its long-term relevance to Papua New Guinea's energy infrastructure.

Engineering and Construction

The project will utilize MISC's integrated capabilities, with the engineering and construction to be handled by Malaysia Marine & Heavy Engineering at its Pasir Gudang fabrication yard in Johor, southern Malaysia.

Contractual and Strategic Details

MISC has secured long-term bareboat charter and operations and maintenance contracts with ExxonMobil. These contracts include a firm 15-year charter with options to extend for up to an additional 15 years, providing MISC with substantial, long-term revenue visibility. This venture aligns with the company's strategic pillar focused on securing sustainable earnings and future-proofing its portfolio. It follows MISC's recent strategic entry into Brunei and represents a significant expansion of its longstanding partnership with ExxonMobil into the offshore sector.