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Discussions surrounding Malaysian shipping giant MISC’s potential acquisition of compatriot floating production, storage and offloading (FPSO) vessel contractor Bumi Armada have resurfaced, with Upstream's sources hinting that an official announcement may be imminent, possibly within the next one to two weeks.
A potential deal would significantly bolster MISC’s position in the FPSO market, granting the company access to a larger, more diverse fleet of operational units as well as a pipeline of ongoing projects.
These negotiations first came to light in July when Malaysian media revealed that MISC, a subsidiary of national energy giant Petronas which holds the majority 51% interest, was in talks to acquire a “substantial stake” in Bumi.
MISC at the time downplayed the speculation, stating that it “actively explores investment opportunities that could add value for its shareholders" although an informed source told Upstream that these negotiations had, in fact, started early in 2024.combined entity would allow MISC to benefit from economies of scale, streamline operations and enhance its competitiveness in the global FPSO market. By pooling resources, the two companies could also improve their ability to secure long-term contracts with oil and gas operators and expand their portfolio, increasing their chances of winning future tenders.
“There will be significant synergies in operations, maintenance and project execution,” said one FPSO industry expert based in Singapore.
“By combining assets, the companies could reduce costs, optimise asset utilisation and boost project delivery efficiency.”
The merger would also offer strategic access to key offshore regions. Bumi Armada has a strong presence in regions including Southeast Asia, India and West Africa — markets where FPSO operations are critical to offshore oil and gas production. The tie-up would enable MISC to strengthen its footprint in these high-demand areas.
Beyond operational synergies, the deal could diversify MISC’s revenue streams. While the shipping behemoth is primarily known for its liquefied natural gas carrier and tanker businesses, an expanded FPSO portfolio could provide stable cash flows from long-term lease arrangements, serving as a hedge against volatility in other sectors of the energy market.
In response to Upstream's query on the matter, MISC said: "We do not respond to speculation.
"Rest assured, we will communicate with relevant stakeholders if and when there is material development in any of the various opportunities we explore as part of our ordinary course of business."
At the time of publication, Bumi Armada had not responded to Upstream's request for formal comment.
On Monday, the U.S Supreme Court announced that it would not hear an appeal by a group of Taunton, Massachusetts, residents who sought to reverse a lower court’s ruling to keep Mashpee Wampanoag tribal lands in trust.
Now the tribe can continue discussions about what to do with the land, including whether to pursue a casino.
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