MISC signs time charter parties with Exxon Mobil

PETALING JAYA: MISC Bhd, through its vessel-owning units Polaris LNG One Pte Ltd and Polaris LNG Two Pte Ltd, has signed two time charter parties (TCPS) with Exxon Mobil Corp’s wholly owned subsidiary, Seariver Maritime LLC.

The deal is for the time charter of two newbuild liquefied natural gas carriers for operations in international waters.

The vessels will be chartered by Seariver for a firm period of 15 years with an estimated combined contract value of about Us$711mil (some Rm2.95bil).

“The charters for the vessels are expected to commence in the first quarter of 2023.

“The vessels will be constructed by Samsung Heavy Industries of South Korea,” said MISC in a filing with Bursa Malaysia.

Polaris 1 and Polaris 2 are both private companies limited by shares incorporated in Singapore with an initial issued and paid-up capital of US$10 divided into 10 ordinary shares and are indirect wholly owned subsidiaries of MISC.

Meanwhile, Seariver is a limited liability company formed in Delaware, United States, providing a wide range of technical and commercial marine services to Exxonmobil affiliates worldwide.

The deal will not have any effect on the issued and paid-up capital and substantial shareholding in MISC. It is also not expected to have any material impact on the earnings per share, gearing and net assets per share of the MISC group for the financial year ending Dec 31, 2019.

“The risk factors affecting the TCPS include changes in the economic, political and regulatory environment, which the MISC group will take appropriate measures to mitigate,” said MISC.