- Bumi Armada and MISC explore a potential merger to consolidate offshore floating production businesses.
- The non-binding MoU is valid for nine months, focusing on exclusivity and confidentiality.
- The merger aims to strengthen global competitiveness in the growing FPSO market.
Bumi Armada and MISC are exploring a business combination, confirmed through a non-binding memorandum of understanding (MoU). Effective for nine months, the MoU focuses on exploring a prospective merger via an all-share transaction. While non-binding, it ensures exclusivity and confidentiality, reports Offshore Energy.
Aims of the Potential Merger
The merger aims to create a global leader in floating production by combining resources, talent, and engineering expertise.
Global FPSO demand is forecasted to grow, with 83 units expected by 2030. The merger could boost exposure in this expanding market.
Significance of a Malaysian-Based Entity
The merger seeks to establish a Malaysian-based sector-focused entity with enhanced project development capabilities.
The companies will perform due diligence and assess the proposal further before proceeding with a definitive agreement. There is no certainty the merger will be finalized.
Bumi Armada’s FPSO Contract Extension
Bumi Armada’s Armada TGT1 FPSO recently secured a two-year firm period extension, valued at $74.4 million, maintaining zero lost time incidents and over 98% uptime.
MISC continues innovation with projects like the world’s first future-ready newbuild FPSO and collaboration on liquified carbon dioxide (LCO2) carriers.
Challenges and Opportunities
While the merger holds promise, uncertainties remain. The collaboration could reshape the offshore floating production landscape.
The merger, if finalized, could position the duo as dominant players in the offshore floating production market, capitalizing on rising global demand.
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Source: Offshore Energy
