JANUARY 19, 2017—MISC Berhad marked the commencement of the conversion of FSO Benchamas 2 with a ceremony at Malaysia’s MMHE West Yard, Pasir Gudang. Among the dignitaries in attendance were Pairoj Kaweeyanun, President of Chevron Offshore (Thailand) Limited (COTL), and representatives from Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) and AET Tankers (AET).
The 1999-built, 105,400 dwt Aframax tanker Bunga Kelana 5, which has been operated by AET, was selected to be converted in the Floating Storage and Offloading unit. The Bunga Kelana 5 can store about 750,000 bbl of crude oil.
Once the conversion is completed, the FSO will be will be used at the Benchamas field in the Gulf of Thailand. It will mark MISC’s entry into Thailand’s offshore oil and gas market.
With the oil and gas exploration and production industry moving towards the development of FPSOs and FSOs, MISC is confident that this achievement will propel the company’s pursuit of international business opportunities in the coming years. The contract was secured through an international competitive bidding process and is valued at about $230 million for the duration of 10 years, with COTL holding five 1-year options to extend the contract as much as five years. The project is undertaken by MISC’s fully owned subsidiary, MISC Offshore Floating Terminals Limited (MOFT).
MISC’s Vice President of Offshore Business, Tuan Syed Hashim Syed Abdullahremarked, says, “The FSO Benchamas 2 is testament to the engineering capabilities of MISC and our heavy engineering arm, MHB. Today, we have pushed boundaries and turned our technological aspirations of having an FSO facility in Thailand into a reality. It represents our commitment to exceed the expectation of our customers, our pledge to conduct our business in a responsible and sustainable manner as well as to ensure optimum value creation over time. We will reciprocate the trust given to us by fulfilling our promises and executing this project effectively as we forge ahead in fulfilling our vision to consistently provide better energy related maritime solutions and services.”