MISC Group (“MISC” or “the Group”) today announced its maiden entry into Papua New Guinea, having secured long-term Bareboat Charter and Operations & Maintenance contracts with ExxonMobil PNG Limited (“EMPNG”), a subsidiary of Exxon Mobil Corporation and the operator of the PNG LNG Project for a new Floating Storage and Offloading (“FSO”) unit.
These contracts, comprising a firm 15-year charter with extension options of up to an additional 15 years, will provide the Group with substantial long-term revenue visibility. This directly supports its Delivering Progress strategy under the Resilient Core pillar that focuses on securing sustainable, quality earnings and future-proofing the Group's portfolio.
This FSO will be Papua New Guinea’s first offshore floating facility and will be deployed at the Kumul Marine Terminal as part of the Kutubu Pipeline System. It will play a critical role in the storage and offloading of liquid hydrocarbons, including crude oil and condensate, produced from various fields, while the associated gas is fed into the PNG LNG Project.
The PNG LNG Project is a liquefied natural gas (LNG) facility with a production capacity of more than 8.3 million tonnes per annum. The PNG LNG Project is operated by EMPNG, which holds a 33.2% participating interest, in partnership with Santos Limited (39.9%), ENEOS Xplora Inc. (4.7%), Kumul Petroleum Holdings Limited (19.4%) and Mineral Resources Development Company Limited (2.8%).
Zahid Osman, President & Group CEO of MISC said “Securing Papua New Guinea’s first-ever FSO is a significant milestone for MISC and marks another chapter in our longstanding global partnership with ExxonMobil, a relationship built over many years across the shipping segments and now extending into the offshore segment. Following our strategic entry into Brunei with the Kelidang FPU project, this venture continues our momentum in pushing boundaries and entering new markets. It demonstrates our commitment to supporting our partners and host nations to responsibly monetise their resources for long-term development.
This venture is more than a contract; it is about laying a foundation for the future. It also reflects our Delivering Progress strategy in action - entering new frontiers with a world-class partner to deliver sustainable infrastructure that will serve a nation for decades to come. We are privileged to play a pivotal role in supporting the PNG LNG Project, reinforcing our position as a trusted global provider of sustainable maritime solutions.”
The FSO will feature a 30‑year operational lifespan and a minimum storage capacity of 800,000 barrels. Scheduled for deployment in the first half of 2028, its specification includes capabilities to handle condensate for prospective future projects. This ensures the asset remains integral to the nation’s energy landscape well into the future.
This partnership with the PNG LNG Project not only marks the expansion of MISC's offshore portfolio but also reinforces MISC’s commitment to support key energy developments in the region, guided by its Delivering Progress strategy. This project will be delivered by leveraging the Group's integrated capabilities, capitalising on the synergistic expertise within its ecosystem, including the engineering and construction strength of the Malaysia Marine and Heavy Engineering Holdings Berhad (MHB), MISC’s Marine & Heavy Engineering arm. MISC is committed to ensuring the successful deployment and operation of the FSO, further strengthening its position as a leading provider of sustainable offshore energy solutions.
