MISC Bhd has accepted a letter of intent from Petroleo Brasileiro (Petrobras) for the provision of a floating production storage and offloading facility (FPSO) off the coast of Brazil.
The FPSO in question, Mero 3, will be located in the Libra block, Santos Basin, which is offshore from Rio de Janeiro.
The letter of intent also covers operation and maintenance services during the charter phase of the Mero 3 FPSO.
The term of the charter is for 22.5 years from the date of final acceptance of the Mero 3 FPSO by Petrobras, and is expected to begin operations in the first half of 2024.
The Mero field is owned by the Libra Consortium, which is led by Petrobras with its 40% interest.
According to MISC, the contracts under the letter of intent are expected to contribute positively to the earnings of the group for the financial year ending Dec 31 2020, according to a bourse filing dated Aug 17.
At the end of the trading day, MISC’s shares were last done at RM7.83, down 6 sen, with 2.678 million shares traded. – Aug 17, 2020
