16 April 2010
MISC Berhad (“MISC”), one of the world’s renowned LNG transporters today entered into a joint venture agreement with Petromin PNG Shipping Limited a wholly‐owned subsidiary of Petromin PNG Holdings Limited (“PETROMIN”), Papua New Guinea’s National Oil, Gas and Minerals Company. PETROMIN was created to hold the State’s oil, gas and mineral assets and is entrusted to maximise indigenous ownership and revenue gains in the mineral and petroleum sectors of Papua New Guinea. MISC was selected by PETROMIN as its JV partner after going through a competitive bidding process where one other international LNG shipping company also participated.
The purpose of the agreement is to incorporate a joint venture company (“JVC”) to provide LNG transportation solutions for LNG projects in Papua New Guinea and to secure shipping contracts to support other general shipping requirements in the country. The JVC, Western Pacific Shipping Limited, which is to be incorporated in Bermuda Islands, will be 60% owned by MISC, with Petromin PNG Shipping Limited holding the remaining 40%.
The establishment of the JVC will contribute greatly to the export and import activities of Papua New Guinea by providing world‐class shipping capabilities which eventually will be owned by Papua New Guineans and modelled along MISC’s 40 years of extensive shipping experience.
As one of the leading players in LNG shipping, with a total of 29 wholly owned and operated LNG carriers, this joint venture signals MISC’s entry into Papua New Guinea’s oil and gas transportation industry. Through the joint venture, MISC will not only be expanding its energy related transportation business but will also contribute to Papua New Guinea’s capacity building requirements in the shipping business.
The joint venture will also enhance the growth prospects of both companies in the LNG industry, especially in the Asia Pacific region. With the development of two and possibly three LNG projects, the Papua New Guinea LNG industry is estimated to grow to 14.6 million tonnes per annum by 2015.
Furthermore, the joint venture will also enable the structuring of LNG training programmes for local sea‐going professionals in line with Papua New Guinea’s National
Agenda to initiate and grow its nation’s maritime industry.
The signing of the joint venture agreement took place at the Malaysian Petroleum Club, Kuala Lumpur. Signing on behalf of MISC was En Amir Hamzah Azizan, President/Chief Executive Officer of MISC while PETROMIN was represented by its Managing Director and Chief Executive Officer, Mr. Joshua Kalinoe, CSM, CBE. The ceremony was witnessed by the Chairman of PETROMIN, Mr Brown Bai, CSM, CBE.