Malaysia’s MISC has secured long-term bareboat charter and operations and maintenance contracts with ExxonMobil PNG (EMPNG) for Papua New Guinea’s first floating storage and offloading (FSO) unit.
The contracts comprise a firm 15-year charter with extension options of up to an additional 15 years. The FSO will be deployed at the Kumul Marine Terminal as part of the Kutubu Pipeline System and will support storage and offloading of liquid hydrocarbons, including crude oil and condensate, produced from various fields. Associated gas will be fed into the PNG LNG Project.
The PNG LNG Project has a production capacity of more than 8.3 million tonnes per annum. It is operated by EMPNG, which holds a 33.2% participating interest, alongside Santos (39.9%), ENEOS Xplora (4.7%), Kumul Petroleum Holdings (19.4%) and Mineral Resources Development Company Limited (2.8%).
The FSO will have a 30-year operational lifespan and a minimum storage capacity of 800,000 barrels. It is scheduled for deployment in the first half of 2028 and will include capabilities to handle condensate for potential future projects.
“Following our strategic entry into Brunei with the Kelidang FPU project, this venture continues our momentum in pushing boundaries and entering new markets. It demonstrates our commitment to supporting our partners and host nations to responsibly monetise their resources for long-term development. This venture is more than a contract; it is about laying a foundation for the future,” said Zahid Osman, President & Group CEO of MISC.
The project will leverage MISC’s integrated capabilities, including engineering and construction support from Malaysia Marine and Heavy Engineering Holdings Berhad (MHB), as the company expands its offshore portfolio in the region.