MISC begins FSO conversion work for Chevron

Maritime solutions and services provider MISC Berhad has begun the FSO Benchamas 2 conversion work for Chevron at the MMHE West Yard in Pasir Gudang, Malaysia.

To remind, MISC’s wholly-owned subsidiary, MISC Offshore Floating Terminals (MOFT), signed a contract for the lease and operation of an FSO vessel for the Benchamas 2 project in the Gulf of Thailand with Chevron back in August 2016.

The contract is MISC’s first entry into Thailand’s offshore oil and gas market and is valued at approximately $230 million for a duration of ten years with up to five extensions of one year each. The scope of the work for MOFT includes engineering, procurement, construction, installation, commissioning, lease and operations of the FSO Benchamas 2 Project which is expected to start by the second quarter of 2018.

MISC said on Wednesday that the ceremony marking the start of the conversion was attended by the vessel charterer, conversion contractors, and the vessel operator which included the President of Chevron Offshore Thailand Limited (COTL), Pairoj Kaweeyanun. Alongside COTL representatives, the ceremony was also attended by reps from Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) and AET Tankers.

The donor vessel for the conversion is the formerly AET-operated Bunga Kelana 5, an Aframax tanker built in March 1999 with a 105,400 deadweight tonnage which can store around 750,000 tonnes of crude oil.

The Bunga Kelana 5 was identified as the most suitable vessel to be converted into an FSO due to its features that allow for technical upgrades to fit the weather conditions of the Benchamas field in the Gulf of Thailand.

MISC’s Vice President of Offshore Business, Tuan Syed Hashim Syed Abdullah, said: “The FSO Benchamas 2 is a testament to the engineering capabilities of MISC and our heavy engineering arm, MHB.”

The event at Pasir Gudang was also attended by the Managing Director and CEO of MHB, Cik Wan Mashitah Wan Abdullah Sani and MISC representatives from across the region.

The ceremony also saw the launch of the Health, Safety, and Environment (HSE) campaign for this project as well as a guided tour of the MMHE Yard for the COTL delegation and other first-time guests.