A newly set-up subsidiary of Malaysia’s state operator Petronas Carigali is set to take over the operations of the Gumusut Kakap semi-submersible production unit from Malaysia’s beleaguered shipping outfit, MISC,
Petronas is understood to have set up a separate unit, called Exploration Production Operations Maintenance (EPOM), to take over the production semisub operations and maintenance from MISC’s subsidiary, FPSO Ventures.
The Malaysian state operator is set to pick up 50% equity stake from MISC in the delayed project through another wholly-owned subsidiary, EP Ventures Solutions.
MISC estimates the Gumusut Kakap production semisub now costs in excess of $2 billion, including $290 million of cost over-run from multi-year delays on the project delivery.
The equity offload to another Petronas subsidiary is viewed by industry observers as a move to improve the cash position of MISC.
Credit agencies including Standard & Poor’s and Moody’s subsequently uplifted the ratings on MISC after the proposed disposal.