KUALA LUMPUR (May 25): MISC Bhd has secured a 10-year term charter contract to own and operate four specialist DP2 Suezmax size Shuttle Tankers from Petróleo Brasileiro SA (Petrobras).

In a filing with Bursa Malaysia, MISC said today that the contract was secured by its wholly-owned subsidiary AET Tanker Holdings Sdn Bhd (AET) for operations in international and Brazilian waters.

“The firm charter period is 10 years and is expected to commence in 2020. These new vessels will be in addition to the two AET DP2 ships currently on charter in the Brazilian Basin for Petrobras,” the filing read.

Petrobras, in which the Brazilian government owns a direct stake of 50.26%, is headquartered in Rio de Janeiro, Brazil and is an international energy company involved in oil exploration and production, refining, natural gas, electric energy, logistics, trade, distribution, petrochemicals, fertilizers and biofuel segments.

AET, meanwhile, is the petroleum shipping unit of MISC and specialises in the global ocean transport of petroleum.

In a statement today, AET said the four 152,000 deadweight tonnage (DWT) DP2 shuttle tankers will be built by a Korean shipyard for delivery in 2020 and contracted to Petrobras for operations in international and Brazilian waters.

AET said the vessels, compliant with IMO NOx Tier 3 requirement, will be built in accordance with Petrobras’ latest technical requirement for DP2 shuttle tankers and installed with a ballast water treatment system.

Each of the DP2 will be equipped with high power thrusters and generators fully capable of operating in harsh weather conditions.

MISC’s president and group chief executive officer Yee Yang Chien said AET’s focus on increasing its presence in the shuttle tanker business is consistent with MISC group’s priority to develop its portfolio of assets that generate long-term secured income on a recurring basis.

“This award goes to prove that growth remains possible for MISC despite the present challenging operating conditions for tanker operators. It reaffirms MISC’s belief in the prospects of growth in the oil production supply chain,” Yee said in the statement.

“AET’s latest success in the shuttle tanker segment is another step forward in the MISC Group’s commitment to expand its business presence in the Brazilian oil and gas industry, that includes the fast-growing FPSO market,” Yee said.

AET’s president and CEO Capt Rajalingam Subramaniam said the 2010 Petrobras contract signalled the company’s entry into the shuttle tanker market and this allowed it to demonstrate its expertise and enhance its reputation in a more sophisticated arena of the petroleum logistics industry.

“Harnessing this experience, we continued to innovate and reengineer our business and operations to ensure the services we deliver remain relevant to the evolving landscape and our customers’ changing needs. I am delighted that Petrobras has recognised AET’s capabilities and expertise in DP2 shuttle tanker operations, with the award of this new contract,” Rajalingam said.

“Petrobras is one of the world’s leading oil and energy companies and I have every confidence that we will deliver the highest level of service provision, whilst remaining firmly committed to setting new industry benchmarks for safe and responsible operations,” Rajalingam added.

Shares of MISC fell by 10 sen or 1.65% to RM5.96 today, giving it a market capitalisation of RM26.43 billion.

Year-to-date, the counter has lost 19.68% from RM7.42 on Dec 29 last year.