MISC Denies Bumi Armada FPSO Merger Rumors

zoom Malaysian shipping company MISC Berhad (MISC), a subsidiary of Petronas, has denied market rumors on talks with Bumi Armada Berhad on potential merger of the companies floating production storage and offloading (FPSO) vessel businesses.  Recent media reports claimed that MISC may be planning to sell its FPSO to Bumi Armada in exchange for Bumi Armada shares. The reports saw Bumi Armada Bhd rose as much 14.5 sen as the merger rumor was welcomed by many, as the transaction would have created an FPSO giant. The consolidation was also deemed likely having in mind the ongoing market situation in the offshore industry and oil price decline. In response to recent market speculation, MISC wishes to state that the Company is not in any discussions with Bumi Armada Berhad on any potential transaction, the company said in a statement. MISC owns six FPSOs, more than 110 owned and in-chartered LNG, chemical and petroleum vessels with additionally nine floating facilities, including four FSOs, two floating storage units (FSUs), two Mobile Offshore Production Units (MOPU) and a Semi Submersible Floating Production System. The fleet has a combined capacity of 12 million dwt. Bumi Armada owns a fleet of nine FPSOs and is ranked as the world’s fifth largest FPSO operator. World Maritime News Staff