Malaysian shipping company MISC has secured charter deals for two liquefied natural gas (LNG) carriers with the ExxonMobil subsidiary SeaRiver Maritime, reports Ship Technology.
LNG carriers in International waters
The deal is for the time charter of two newbuild liquefied natural gas carriers for operations in international waters.
The vessels will be chartered by SeaRiver for a firm period of 15 years with an estimated combined contract value of about US$711mil (some RM2.95bil).
“The charters for the vessels are expected to commence in the first quarter of 2023. The vessels will be constructed by Samsung Heavy Industries of South Korea, ” said MISC in a filing with Bursa Malaysia.
Notable Landmark for MISC
MISC Group CEO / Yee Yang Chien said: “This is certainly a landmark moment for MISC, and we are proud to expand this strategic partnership with ExxonMobil through SeaRiver in providing best-in-class shipping solutions, beginning with petroleum and now LNG.”
“We honour the trust and value the opportunity given for us to support ExxonMobil in ensuring safe, efficient and reliable transportation of LNG,” he added.
He also said,”Ultimately, this partnership is a testament to our capabilities of fulfilling the world’s growing demands for this energy source.”
Polaris LNG One and Polaris LNG Two
Polaris 1 and Polaris 2 are both private companies limited by shares incorporated in Singapore with an initial issued and paid-up capital of US$10 divided into 10 ordinary shares and are indirect wholly owned subsidiaries of MISC.
Meanwhile, SeaRiver is a limited liability company formed in Delaware, United States, providing a wide range of technical and commercial marine services to ExxonMobil affiliates worldwide.
Substantial shareholder
The deal will not have any effect on the issued and paid-up capital and substantial shareholding in MISC.
It is also not expected to have any material impact on the earnings per share, gearing and net assets per share of the MISC group for the financial year ending Dec 31,2019.
“The risk factors affecting the TCPs include changes in the economic, political and regulatory environment, which the MISC group will take appropriate measures to mitigate,” said MISC.
Competitive LNG value chain
ExxonMobil Global LNG marketing vice-president Alex Volkov said: “The addition of these two vessels will help us build a competitive LNG value chain as ExxonMobil continues to grow its global gas portfolio and expand supply positions to meet evolving needs of our customers.”
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Source: Ship Technology
