Earnings from FPSO will expect to add to bottomline from FY14.
Group continues to realign resources to provide Project Management, engineering and construction services in fixed and floating production facilities sector
EOC Limited (EOC or the Group), one of Asia's leading providers of offshore production services to the oil and gas (O&G) sector, has announced that the Perisai Kamelia - the Floating Production, Storage and Offloading (FPSO) vessel deployed to a fast-track gas production project in the North Malay Basin, Malaysia - successfully completed start-up and commissioning and that the vessel's charter has commenced in November 2013.
Under EOC's contract with an all-new client, Hess Exploration and Production Malaysia B.V. (Hess), and in co-operation with local Bumiputera Malaysian partner, Larizz Petroleum Services Sdn Bhd, the Perisai Kamelia has been assigned to support the early production activities in the North Malay Basin. Signed in November 2012, the contract covers a three-year charter period valued at about US$272.1 million, with extension options that could add a further three years to the charter duration.
EOC's Chief Operating Officer, Mr Jon Dunstan, explained: "Our efforts to maintain a healthy fleet utilisation rate have clearly borne fruit, and the FPSO's ability to achieve start-up and commissioning and gas production in such a narrow time frame demonstrates once again the depth of our capabilities in this area and our unique ability to provide complex life of field solutions in a fully integrated manner where we can provide design, construction, installation and operation of oil and gas facilities using fully in-house or affiliate company resources. We will continue to study how we can use our expertise to expand our service offerings into an integrated delivery model followed by a life of field service to our clients. It will certainly help us boost our presence in Southeast Asia, which offers excellent offshore opportunities for our vessels and services."
The first of EOC's two FPSOs, the Perisai Kamelia was previously known as the Lewek Arunothai. The vessel was recently modified to meet the operational requirements of the North Malay Basin, including the addition of an external turret mooring system able to withstand tropical cyclone conditions that was designed and fabricated by EOC affiliate companies.
On August 2013, EOC completed the sale of its 51% equity interest in Emas Victoria (L) Bhd and Victoria Production Services Sdn Bhd, the entities which own and operate the FPSO respectively, to Perisai Production Holdings Sdn Bhd, a wholly-owned subsidiary of Perisai Petroleum Teknologi BHD (Perisai) for US$89.25 million. Under the sale and purchase agreement between the two parties, the consideration is in the form of issuance of 144.7 million new Perisai shares to EOC and 49% equity interest in SJR Marine (L) Ltd from Perisai.
