MISC secures storage, maintenance services project for Petrobras

By ANIS FARHANAH MALEK
anisfarhanah@dagangnews.com

KUALA LUMPUR 17 Ogos - MISC Berhad (MISC) has accepted a Letter of Intent (“LOI”) from Petróleo Brasileiro S.A. (“Petrobras”) for the provision of few services of the latter. 

The provision includes floating production storage and offloading facility (Mero 3 FPSO) located offshore Rio de Janeiro in the Libra block, Santos Basin, Brazil and operation and maintenance services during the charter phase of Mero 3 FPSO.

Pursuant to the LOI, the term of the charter is 22.5 years from the date of final acceptance of the Mero 3 FPSO by Petrobras. The Mero 3 FPSO is expected to commence operation in the first half of 2024.

MISC in its bourse filing said, the contracts contemplated under the LOI do not have any effect on the issued and paid up share capital as well as substantial shareholding in the company. 

“The contracts are also not expected to have any material impact to the gearing and net assets per share of MISC for the financial year ending 31 December 2020. 

“However, the contracts are expected to contribute positively towards the earnings of MISC for the financial year ending,” said the company.

The Mero field is owned by the Libra Consortium that is led by Petrobras with a 40% interest. 

Petrobras, headquartered in Rio de Janeiro, Brazil is an international energy company operating on an integrated basis and specialising in the oil, natural gas and energy industry.

The risk factors affecting the LOI include changes in economic, political and regulatory environment, and operational risks, which are adequately mitigated by the terms and conditions of the contracts.

None of the directors or substantial shareholders of MISC or persons connected to them have any interest, direct or indirect, in the LOI. - DagangNews.com