KUALA LUMPUR, Nov 13 — AmInvestment Bank Bhd said the development in floating production, storage and offloading (FPSO) activities has reaffirmed its view that the sector is one of the brighter spots in the oil and gas (O&G) industry.
It said the O&G industry is still struggling with the Covid-19 pandemic that has derailed oil demand, while multiple FPSO projects are currently being evaluated in South America and West Africa.
“Brazil’s Petrobras is currently looking at up to 14 FPSO projects, while there are five in the North Sea, four in Australia, three in Guyana and three in West Africa.
“Given that the previous oil collapse and current pandemic have culled the number of global operators with adequate operational and financial capability, the remaining players are currently in a sweet spot,” said AmInvestment Bank in a research note today.
It said that there are fresh FPSO prospects in Malaysia with the rebidding exercise for the Limbayong FPSO charter to be deployed off Sabah.
Petronas is looking to charter the Limbayong FPSO for a firm 12 years, with options for 3 + 3 + 2 years.
“At least four leading international contractors or consortia have shown interest in the deepwater-capable FPSO, which could cost up to US$700 million (US$1=RM4.13). This includes domestic players such as MISC, Yinson, Sabah International Petroleum and Bumi Armada.
“However, Bumi Armada may be partnering with India’s Shapoorji Pallonji Oil & Gas, similar to its three projects in India and one in Indonesia due to the group’s financial constraints,” said the investment bank.
Meanwhile, Upstream reported that US-independent ConocoPhillips may be opening a bid for an FPSO vessel charter for its Patawali oil project on Block WL4-00 off Sarawak, following a feasibility study, despite market uncertainty in the wake of the Covid-19 pandemic.
AmInvestment Bank added that four local FPSO players, namely Bumi Armada, MISC, Yinson and MTC were said to be interested in the FPSO project, while Aker Solutions and TechnipFMC could be bidding for the engineering contract. — Bernama
