Ramunia buying vessel for RM248m

KUALA LUMPUR: RAMUNIA HOLDINGS BHD [] is buying a floating, storage and offloading (FSO) vessel for US$82.5 million (RM248.37 million) cash.

It said on Friday, July 8 it would RAHB proposes to finance up to RM201.3 million or 81% of the purchase price via bank borrowings and the remainder via internally generated funds

It had on Thursday, signed a memorandum of agreement with DP Producer AS to buy the vessel from Drydocks World, which is equally owned by Dubai LLC and NTM Refectio II AS.

DP Produce, which was incorporated in Norway on May 16, 2006, is under bankruptcy or liquidation proceedings.

“The proposed acquisition provides an excellent opportunity for Ramunia to tap into and participate in the development of marginal oilfields and deepwater fields in Malaysia and the region,” it said.

It added the exploration, production, storage and offloading activities for the upstream O&G sector involved the fabrication of offshore structures, provision of offshore terminals, marine support services, transportation and installation, operations and maintenance and drilling.

“The proposed acquisition also presents an immediate opportunity for Ramunia to participate in any direct negotiations, invitation to bids and requests for new proposals for the proposed deployment of FPSOs, to be undertaken by Malaysian and regional oil companies, where the demand is increasing within the backdrop of higher oil prices,” it said.