SBM Offshore inks FPSO share purchase agreements with Malaysia's MISC

Netherlands-based SBM Offshore has entered into an agreement to acquire Malaysian shipping company MISC's ownership interests in a floating production storage and offloading vessels (FPSOs).

The transaction is still subject to certain conditions precedent and approval by the relevant competent authority. The financial details of the transaction were not disclosed.

Pursuant to a share purchase agreement signed by both parties, SBM Offshore will acquire MISC's entire beneficial equity interest in the leasing and operating entities associated with FPSO Espirito Santo (pictured). The FPSO is being deployed in the BC 10 field at depths of 1,789 metres in the Campos Basin off the Brazil Vitoria Sea to service Shell do Brasil, a Brazil subsidiary of Shell.

SBM Offshore and MISC hold 51 per cent and 49 per cent of FPSO Espirito Santo, respectively. Upon completion of the transaction, the FPSO will be fully owned by SBM Offshore.

In addition to the transaction involving FPSO Espirito Santo, SBM Offshore plans to divest all of the beneficial equity in the leasing and operating entities associated with FPSO Kikeh to MISC. This type of FPSO is deployed in the Kikeh deepwater field at a depth of 1,350 metres in Block K of Sabah off the coast of Malaysia to serve Murphy Sabah Oil.

MISC and SBM Offshore hold 51 per cent and 49 per cent of FPSO Kikeh, respectively. The FPSO will be fully owned by MISC upon completion of the transaction.