Malaysian state-owned shipping company MISC has bought the remaining 50% stake in the Gumusut-Kakap Semi-Floating Production System Limited for $445m from E&P Venture Solutions (EPV), part of Petronas Carigali.
The Gumusut-Kakap semi-floating production system (FPS), the first of its kind in the Asia-Pacific region, is currently installed in around 1,200-metre water depth in offshore of Sabah, Malaysia.
Commercial production from the unit began in October 2014, when its 25-year lease to an unnamed subsidiary of “an international oil and gas company” commenced.
The FPS itself is a semi-submersible system, able to produce up to 150,000 bpd of crude oil from subsea wells. It it also capable of 300m cfpd of gas injection, 225,000 bpd of water injection and has power generating capacity of 69mW.
MISC sold a 50% stake in the FPS to EPV in December 2012 for $305.7m and retained the other 50% interest. The sale gave MISC a shot of liquidity and an income stream from the unit, with which “to weather the tough operating conditions in the shipping industry prevailing at that point in time”, it said. Since then, MISC’s financial position has improved with tanker shipping markets.
“The increase in stable and recurring revenue contribution to MISC will further strengthen the financial position of the MISC Group,” the shipping company said.
“Furthermore, the proposed acquisition represents a low-risk investment to MISC in comparison to investing in greenfield projects, as the Gumusut-Kakap Semi-FPS is already in operation and the long-term lease of 25 years has commenced.”