Mooted Malaysian FPSO merger would create giant

Mooted Malaysian FPSO merger would create giant

Local media in Malaysia is reporting state energy giant Petronas is pushing consolidation in the FPSO sector to create a giant in the business. MISC, Petronas’s shipping subsidiary, could inject its FPSO business into fellow Malaysian offshore firm Bumi Armada in return for shares, local media suggests.

Among MISC’s diverse fleet are six FPSOs while Bumi Armada has nine. Combined the pair would leapfrog BW Offshore to claim second spot in the world FPSO fleet rankings.

The FPSO market has been hit by the fall in oil prices and is deemed ripe for consolidation.

In April, Bumi Armada implemented a group-wide restructure affecting around 10-12% of the company’s on-shore employees across all job grades, in both local and foreign offices. The company has yet to find a replacement permanent ceo 11 months after the previous head resigned.

 

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Related Posts