Kuala Lumpur (2 Oct): Icon Offshore has struck a deal to buy Perisai Pacific 101, or known as PP101, from Perisai Petroleum Teknologi Berhad (PPTB)
In a statement to Bursa Malaysia, Icon Offshore said its wholly owned unit Icon Fleet Sdn Bhd had on Oct 2 entered into a memorandum of agreement with seller Perisai Pacific 101 (L) Inc, Oversea-Chinese Banking Corporation Ltd and PPTB for the purchase of the rig.
Under the memorandum of understanding signed between Icon, PPTB, and OCBC, Icon will buy the rig for an adjusted sale price of $41.79 million and will acquire a 51% stake in Perisai Offshore from PPTB for $255,000
Icon Offshore is an offshore support vessels provider in Malaysia which provides a wide range of logistical support services throughout the entire offshore O&G life cycle from exploration and appraisal, field development and operation and maintenance, through to decommissioning.
Icon said that the planned acquisition of the jack-up right would provide it with an opportunity to own and operate the rig and to enter an offshore drilling business, and as an additional source of income. As part of the Icon Group long-term business growth initiatives, the Icon Group plans to enhance and broaden its offerings of products and services to better serve its clients.
“In line with the abovementioned strategy, upon completion of the Proposed Acquisitions, it will provide the Icon Group with the opportunities to transform Icon into an integrated services provider. The company envisages that the proposed acquisitions shall enable the Icon Group to differentiate itself further relative to peers and command stronger negotiation position with oil majors,” Icon said.
PP101 is a jackup drilling rig built in 2014 in PPL Shipyard, Singapore with Pacific Class 400 design and registered in Port Klang.
Currently, only two (2) local drilling contractors in Malaysia operating jackup rig which are Velesto Energy Berhad and PPTB.
Outlook of the O&G industry
When compared to other Southeast Asian countries, the demand for jack-ups in Malaysia are expected to be the highest throughout the forecast period, primarily driven by existing exploration and production blocks operated by major companies such as Petronas Carigali Sdn Bhd, Royal Dutch Shell PLC (Shell), Mubadala Petroleum LLC and PTT Exploration and Production Public Company Limited. New demand for jack-ups will either be sourced from extension of existing drilling contracts, or new PSC blocks awarded by PETRONAS for future exploration activities.
(Source: Overview and Outlook of the Global, Regional and Malaysia Oil & Gas Industry and Rigs Market Outlook report issued by Frost & Sullivan)
