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.