Sources say US based Hess Corp is expected to award a contract for a floating, production, storage and offloading (FPSO) vessel for the North Malay Basin development soon and plans to start production in the basin later 2012.
The seven fields that make up the North Malay Basin have a combined gas resource potential of 1.3 trillion cu ft.
According to sources, Armada and MISC, with their respective partners are vying head to head for the FPSO contract. Neither company has been notified of any award being made so far.
It should be announced soon, latest by the end of March 2012, if Hess wants the job to start by end 2012.
It is understood that Hess is looking at a three year charter for the FPSO, which is to be between 75000 and 115000 deadweight tons.
Charter rates for an FPSO vary considerably, but are likely to be above US$200000 a day.
Armada is understood to have brought in Oslo listed EOC Ltd – in which Singapore’s Ezra Holdings Ltd has a 46% stake – as its partner in bidding for the contract. It is not known if Armada is eyeing the Hess FPSO job for its recently acquired a 107160 deadweight ton tanker for rm68 million.
MISC meanwhile, is understood to have teamed up with Ramunia Holdings Bhd. Ramunia acquired a tanker in Oct 2011 for US$82.5 million or rm249 million then.
MISC and Ramunia are understood to be looking to modify the FPSO at MHHE. MMHE is a 66.5% unit of MISC.
In Dec 2011, news reported that Armada led consortium was the front runner to bag the job, but since then there has been little news. The silence would means that MISC is back in favor with Hess but this remains to be seen.
MISC is a 62.7% unit of Petronas. Block PM 301, which contains six fields is operated by Carigali Hess Mutiara, a JV between Hess and Petronas. It is not clear who Hess is partnering for this field, but Petronas is likely to have a presence.
Bagging this contract could be a boon for MISC.
The seven fields that make up the North Malay Basin have a combined gas resource potential of 1.3 trillion cu ft.
According to sources, Armada and MISC, with their respective partners are vying head to head for the FPSO contract. Neither company has been notified of any award being made so far.
It should be announced soon, latest by the end of March 2012, if Hess wants the job to start by end 2012.
It is understood that Hess is looking at a three year charter for the FPSO, which is to be between 75000 and 115000 deadweight tons.
Charter rates for an FPSO vary considerably, but are likely to be above US$200000 a day.
Armada is understood to have brought in Oslo listed EOC Ltd – in which Singapore’s Ezra Holdings Ltd has a 46% stake – as its partner in bidding for the contract. It is not known if Armada is eyeing the Hess FPSO job for its recently acquired a 107160 deadweight ton tanker for rm68 million.
MISC meanwhile, is understood to have teamed up with Ramunia Holdings Bhd. Ramunia acquired a tanker in Oct 2011 for US$82.5 million or rm249 million then.
MISC and Ramunia are understood to be looking to modify the FPSO at MHHE. MMHE is a 66.5% unit of MISC.
In Dec 2011, news reported that Armada led consortium was the front runner to bag the job, but since then there has been little news. The silence would means that MISC is back in favor with Hess but this remains to be seen.
MISC is a 62.7% unit of Petronas. Block PM 301, which contains six fields is operated by Carigali Hess Mutiara, a JV between Hess and Petronas. It is not clear who Hess is partnering for this field, but Petronas is likely to have a presence.
Bagging this contract could be a boon for MISC.
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