KUALA LUMPUR (Aug 17): MISC Bhd has inked a deal with Petróleo Brasileiro SA (Petrobras) to provide a floating production storage and offloading (FPSO) facility and operation and maintenance services to the Brazilian oil and gas giant.

In a Bursa Malaysia filing today, MISC said the FPSO facility, named Mero 3 FPSO, is located offshore from Rio de Janeiro in the Libra block, Santos Basin, Brazil.

The international energy-related maritime solutions and services provider accepted the letter of intent that sets the term of the charter at 22.5 years from the date of final acceptance of the Mero 3 FPSO, expected to commence operation in the first half of 2024, by Petrobras.

"We would like to thank Petrobras for their confidence and trust in MISC for this major deep-water project in one of the main hotspots for FPSO in the world. It has been a two-year journey in our march towards securing our first deep-water FPSO project in Brazil," MISC president and group chief executive officer Yee Yang Chien said.

"This project is close to the hearts of many, especially the various teams across the Offshore Business division who deserve a thumbs-up for all their dedication and commitment to making this day a reality for the group.

"Marked by this achievement, we are ushering [in] a new era for MISC by undertaking a complex project with a huge investment that will ultimately lay the foundation for future international projects. We are determined to deliver the best to our client for the Mero 3 FPSO project and as a group, we look forward to contributing to the advancement of the energy sector in Latin America," said Yee.

The Mero field is owned by the Libra Consortium, which is led by Petrobras with a 40% interest in partnership with Shell Brasil Petróleo Ltda, Total E&P do Brasil Ltda, CNODC Brasil Petróleo e Gás Ltda, CNOOC Petroleum Brasil Ltda and Empresa Brasileira de Administração de Petróleo e Gás Natural SA — Pré-Sal Petróleo SA.

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

Shares in MISC were down eight sen or 1.01% to RM7.81 at 2.50pm, valuing the company at RM34.85 billion. Around 519,500 shares were transacted.

The counter is marginally lower year-to-date, falling 6.47% from RM8.35.