Malaysia’s MISC is looking to acquire distressed floating, production, storage and offloading (FPSO) assets, local newspaper The Star reports.
According to Yee Yang Chien, president and chief executive officer of MISC, the prolonged low oil prices environment could result in FPSO owners putting some of their assets up for sale and these may be assets which have term-charter contracts in place.
“We have been looking at the market since the last year, and our prediction is somewhat coming true as some distressed assets have cropped up in the market. But we are not in any rush as oil prices are still low,” Yee said.
“We are also looking at acquiring petroleum tankers if there are opportunities,” he added.
Yee said there were fewer greenfield upstream FPSO contracts to bid for now and hence it makes more sense for them to buy into ones in operation, which will also eliminate construction risk.
For the year of 2015, MISC’s net profit grew to RM2.47bn ($640m) from RM2.2bn ($570m) in 2014.
