Malaysia’s MISC has received a letter of award from Petronas Carigali for the provision of an FPSO unit for a natural gas development project in Brunei. The charter of the floater is for 12 years, with Petronas Carigali having the option to extend the charter for up to three one-year periods. MISC will also be in charge of operating and maintaining the floater. The unit is expected to commence operation in the first half of 2029. The contract was won following an international competitive bidding process. Although MISC did not state the name of the project, the floater will be deployed on the Kelidang project, an offshore gas development located roughly 125 km offshore Brunei. It comprises three principal discoveries – Kelidang North East, Keratau, and Keratau South West. The project is led by Petronas as the operator, with collaboration from Shell and Brunei National Petroleum Company. A cornerstone of the development plan is the deployment of an FPSO vessel, designed to handle up to 450m standard cubic feet per day of gas. The FPSO is planned for installation in water depths of about 150 m, supported by a network of flowlines that will connect up to six subsea wells located at depths reaching 2,000 m. The pre-bid meeting for the floater tender started back in January 2024, with MISC, Yinson, Bumi Armada, and others being in contention for the deal. According to Malaysia’s Pahang Al-Sultan Abdullah University, financial projections position the project as a notable investment, with an estimated capital expenditure of around $750m. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1_95_0_1_2'); }); TagsBrunei Malaysia