AED Oil Ltd is studying MOPSU for Puffin and Talbot Field Development
According to AED Oil Ltd , MOPSU is a potential candidate for Puffin and Talbot Field Development. In their Revised Strategies, Reserves and Field Development Report, MOPSU is evaluated in parralel with FPSO and Fixed Platform Production Systems.
Source : AED Oil Ltd
Perisai eyes first contract for Mopsu
Written by Isabelle Francis KUALA LUMPUR: PERISAI PETROLEUM TEKNOLOGI Bhd is in talks with parties in Australia, Indonesia and India to secure the first contract for its award-winning mobile offshore production and storage unit (Mopsu).
Perisai group chief financial officer Yeo Pek Chin said it looked forward to securing its first contract, which would keep it busy for “a few” years. He was not able to share any earnings or revenue projection from these contracts.
“Mopsu is in line with Perisai’s strategy to grow in niche areas,” he told The Edge Financial Daily in a recent interview.
He said the Mopsu TECHNOLOGY, known for its cost efficiency and mobility versus typical drilling platforms, was suitable for shallow water and marginal fields. Perisai was recently awarded the “Excellence in Innovation” award by Frost&Sullivan for using Mopsu.
Yeo said the Mopsu, with a life span of about 25 years, had the capability to operate water depths of 80 to 120 metres, depending on its variant or type. It costs about US$70 million (RM235.9 million) to US$80 million to fabricate a Mopsu.
To fund the deployment of the first Mopsu, Perisai recently raised funds via a US$10 million redeemable convertible bonds (RCB), which were fully taken up by a private equity fund in Singapore.
Noteworthy is that the RCBs are the first US dollar-denominated bonds issued and cleared in Malaysia, paving way for more of these issuances to come.
Yeo said Perisai opted for the RCB given its effort to diversify its investor base. Furthermore, he said, as its revenue from the Mopsu business would be quoted largely in the greenback, the RCB also provided a natural hedge against foreign exchange movement.
Also, Perisai, as an issuer, would not have the obligation to make periodic interest payments that may disrupt cash flow, he added.
Perisai has tied up with Gryphon Energy (Asia Pacific) Sdn Bhd, the exclusive licensee of Mopsu, to establish a new company to market Mopsu in the Asia-Pacific region and will have the option to take up to 90% stake in each of the Mopsu units as well as the right of refusal on value-added services.
Perisai will hold a 49% stake in the new company and the rest by Gryphon. Mopsu’s intellectual property is owned by Kingtime International Ltd.
Yeo expects the demand for Mopsu to be “encouraging” due to its nature of cost efficiency, early production system, scalability and flexibility. It is understood that the Mopsu can help oil giants save up to US$100 million on a typical field development.
As it takes 18 months to fabricate a Mopsu, it is safe to assume that Perisai may only see earnings in the venture to trickle in from next year onwards. Nonetheless, Perisai has projected a full-year net profit of RM61.1 million for the year ending Dec 31, 2009 (FY09) and RM74 million for FY10.
The company’s earnings would come from its vessels and corrosive control services.
The group’s net profit rose nearly ninefold to RM33.15 million in its first half ended June 30, 2009 from RM3.74 million a year earlier, while revenue rose 143% to RM66.96 million from RM27.64 million. Basic earnings per share rose to 9.02 sen from 1.80 sen.
Perisai attributed the increase in revenue and net profit to the execution of the existing bareboat charter contract for the Derrick Lay Barge and the lease of a portable saturation diving system.
In notes accompanying second-quarter results, Perisai said the group’s successful track record and its proprietary technology put it in the forefront for securing potential new contracts in the region as oil companies ventured into marginal fields, deepwater and remote environments.
It said the international patent-pending Mopsu was a breakthrough, a “game changer” in the oil and gas sector.
Perisai said unlike other systems, which relied on drilling rigs, wellhead platforms, pipelines or a floating storage and offloading vessel, Mopsu used modular drilling units, integrated storage and a detachable drilling template, with almost the entire system fully recoverable and reusable.
The company had said an immediate contract award was contemplated to a reputable shipyard once an end-user contract had been signed or financing secured to build the first unit. Perisai shares ended one sen higher at 59.5 sen last Friday.
Source: The Edge Financial Daily.
Perisai Petroleum Teknologi Bhd will make an announcement regarding the content of this article in the next few days.
New technology making a name for oil & gas supply company
While investors may view oil and gas technology solutions provider Perisai Petroleum Teknologi Bhd with some amount of scepticism due to past mishaps, one certainly cannot fault them for their steadfast ability to pick themselves up from the pieces and forge ahead.
Nagendran Nadarajah ... ‘The MOPSU is going to be a game changer.’
In June this year, Perisai went up the value chain when it shifted to the main board of Bursa Malaysia from its Mesdaq status.
To further mark its hunger for innovation as emblematic, Perisai recently featured its new logo, a bright orange phoenix rising from the ashes – perhaps best signifying rebirth and constant evolution.
This new logo was timely, considering that just last week, Perisai was awarded the “Excellence in Innovation” award by Frost & Sullivan.
The award was for recognition of Perisai’s potential contribution to the development of marginal and uneconomical offshore oil and gas (O&G) fields using MOPSU (mobile offshore production & storage unit) technology.
This makes Perisai the first company in the O&G industry in the Asia-Pacific region to be awarded the accolade.
Companies win awards all the time. What’s so special about this one?
For starters, it appears that the MOPSU will change the global landscape of O&G sector almost instantaneously.
The MOPSU is a mobile offshore production and storage unit, a self-installing, re-locatable offshore platform with integral crude or condensate storage and offloading facilities with the capability to assemble a wellhead platform at site and support a modular drilling rig.
It has been reported to be the only technology in the world that can supply and install a wellhead platform to accommodate 12 to 20 wells from as low as US$15mil per unit. Overall savings on a typical field development has been estimated at US$70mil-US$100mil.
“It is going to be a game changer and it has strong customer appeal as it allows previously deemed uneconomical fields to be developed cost effectively in an incremental way with minimum capital, minimum risk and optimal facilities,” says Perisai’s managing director Nagendran Nadarajah.
Not surprisingly, Perisai sees the MOPSU technology as the catalyst for its upstream marginal field development business.
A model of Perisai Petroleum’s MOPSU MK I
“Previously nobody touched marginal fields because of its location, size and the uncertainty surrounding recoverable reserves. They plough in so much money, and sometimes, there is no oil to be found. With the MOPSU, fields with recoverable reserves as low as 4 million barrels can now be produced,” says Nagendran.
On this note, Perisai recently signed a joint venture agreement with Gryphon Energy (Asia Pacific) Sdn Bhd for the setting up of a new company (Newco) to market the MOPSU in the Asia-Pacific region and will have options to take up to 90% stake in each unit and first right of refusal on value added services that contracts can generate subject to end users’ concurrence.
Perisai will have a 49% equity stake in the Newco and will provide consideration up to US$6.5mil for the commercialisation of the technology. The remainder of the stake will be held by Gryphon Energy (Asia Pacific) Sdn. Bhd.
For each secured project, the joint-venture company is entitled to a marketing fee of 2% of the total contract value and the mark-up on the project management fee.
Gryphon is involved in the licensing, research and development, marketing and leasing of the MOPSU bareboat. It also undertakes project management for MOPSU design, approvals, procurement, fabrication, installation, hook-up, commissioning, start-up, operations and maintenance.
Now every field can produce
Presently, O&G operators avoid developing marginal fields, as these are often located in remote locations with little or no infrastructure, and with no certainty of the amount of recoverable oil in place.
Traditionally, these fields would require the use of a jack-up rig, a wellhead platform, a mobile offshore production unit (MOPU) and a floating, storage and offloading vessel (FSO), incurring capital expenditure (capex) of at least US$100mil, and if recoverable reserves of oil is found to be inadequate to continue production, the capex will have to be written off.
“With the MOPSU, the field concessionaire has total control over the field as the unit can be used for well appraisal, extended well testing and as an early production system, the crude or condensate storage can be scaled up by utilising an FSO when production exceeds prediction or in the worst case scenario, the unit re-deployed to another field at minimal costs.
“With the MOPSU, there is going to be a paradigm shift. The FPSO replaced huge fixed platforms years ago; the MOPSU will replace FPSOs in water depths up to 120m,” says Gryphon Energy (Asia Pacific) Sdn Bhd executive director Mahendran Suppiah.
Meanwhile, Frost & Sullivan’s director for Asia Pacific Energy & Power Systems Practice, Ravi Krishnaswamy notes that the MOPSU can bring fields online faster.
“It is easily re-locatable, highly scalable and flexible, has built-in production storage capacity and is self-installing. This makes it a very suitable solution for developing marginal fields. It offers a unique value proposition by providing a cheaper alternative to conventional platforms for faster oil or gas field developments,” he says.
With approximately 500 potential marginal fields awaiting development in the Asia Pacific region, the MOPSU does provide a cheaper alternative innovative solution which could prove to be a boon to O&G concessionaires.
Nagendran says that there have been interests from parties in India, Australia, Indonesia, Vietnam and Morocco.
The cost of a MOPSU will average around US$80mil. There will be two variants, the Mark 1 and the Mark 2. The Mark 1 can be deployed in water depths up to 80m, while the Mark 2 is designed for harsher metocean conditions in water depths up to 120m.
The MOPSU will require a fabrication period of 18 months. Hence, if Perisai were to secure a MOPSU contract now, earnings will only flow in 2011 onwards.
Sustainable earnings ahead
Without the MOPSU, Perisai continues to be sustained by its derrick lay barge, the Enterprise 3, which has been contracted out at a day rate of US$95,000 to TL Offshore, a unit of Sapura Crest Petroleum Bhd for 4.5 years up to 2012.
Enterprise 3 started contributing in November 2008, and was also responsible for Perisai’s record earnings in the first quarter of 2009.
For the second quarter to June 30, Perisai recorded a net profit of RM17.1mil, a tenfold increase on a year on year basis from RM1.71mil previously. On a quarterly basis though, it was almost flat compared to the previous quarter’s reported earnings of RM16mil.
These strong earnings came mostly from its Enterprise 3 and its saturation diving system (SAT) that are on long-term charter. Hence, for the first half of 2009, Perisai’s operating margin improved dramatically to 77.5% from 10.3%.
TA Securities analyst Kaladher Govindan is forecasting a net profit of RM57.1mil on the back of revenue of RM92.3mil for Perisai’s year ending December 2009.
Perisai recently raised US$10mil from its redeemable convertible bonds issuance. It has also received approval from the Securities Commission to raise funds through a 10% private placement of its shares. Nagendran says this placement should be completed within the next two months.
“It is a no brainer that the US$10mil that it raised from the recent redeemable convertible bonds and the expected RM40mil that will be raised soon through a 10% private placement are mainly meant for this maiden marginal field venture that will make MOPSU commercially viable if everything goes as planned,” says Kaladher.
Source : TheStarOnline
Perisai Petroleum Tekonolgi Bhd receives 2009 Excellence in Innovation Award
OIL and gas solutions provider PERISAI Petroleum Teknologi Bhd has bagged the “Excellence in Innovation” award at the Frost & Sullivan Growth Excellence Awards in Kuala Lumpur yesterday.
This makes Perisai the first company in the oil and gas industry in Asia-Pacific to be awarded the accolade.
The award is for recognition of Perisai’s potential contribution to the development of marginal and uneconomical offshore oil and gas fields using Mobile Offshore Production & Storage Unit (MOPSU) technology, a re-locatable offshore platform.
Source : Bussines Times Download
Download Perisai Best Practices Award Write-up by Frost and Sullivan
Nagendran Nadarajah (MD) and Mark Paton receiving Frost and Sullivan Award
Perisai representatives at Frost and Sullivan Award Ceremony
Perisai in JV for MOPSU ops
PETALING JAYA: Perisai Petroleum Teknologi Bhd is forming a 49:51 joint venture with Gryphon Energy (Asia Pacific) Sdn Bhd to undertake project management works and market research and development activities related to mobile offshore production and storage unit (MOPSU) in the Asia-Pacific region.In a filing with Bursa Malaysia yesterday, Perisai said the proposed joint-venture company, with an initial paid-up capital of RM10,000, was expected to contribute positively to the group.
According to Frost & Sullivant, there are more than 500 potential projects for MOPSU in the region. “For each secured project, the joint-venture company is entitled to a marketing fee of 2% of the total contract value and the mark-up on the project management fee,” it said.
Gryphon is involved in the licensing, research and development, marketing and leasing of bareboat of the MOPSU. It also undertakes project management for MOPSU design, approvals, procurement, fabrication, installation, hook-up, commissioning, operations and maintenance. Perisai said it would be able to strengthen its position in the business and operations of oil and gas industry in the Asia-Pacific region where the joint-venture company operates.
The collaboration also allows the company to achieve its long-term objective to become a one-stop support centre for the development of marginal fields and deepwater activities. “It’s an avenue to provide offshore installation and support vessels, buoys, mooring systems, drilling rigs, pipelines, hoses, topside-related equipment and all other hardware and equipment required to carry out the MOPSU projects,” it said. “This is consistent with Perisai’s intention to seek strategic alliances and joint ventures to expand its market share and venture into new overseas market,” it added.
Source : TheStarOnline
Other local publications that picked up the same news:
| Publication | Headline | Language | Section |
| Berita Harian | Meteral Usaha Sama | Bahasa Malaysia | Ekonomi |
| New Straits Times | Perisai, Gryphon To Set Up Firm In Malaysia | English | Business / Bizbytes |
| Oriental Daily | Perisai And Gryphon Energy Cooparate To Establishment Of Associated Company | Chinese | Business / Bizbytes |
| Sin Chew Daily | Perisai Teams With Gryphon In New Business | Chinese | Business / Bizbytes |
| The Malaysian Reserve | Perisai, Gryphon To Form JV | English | Corporate |
New MOPSU venture in the works
Quoted from http://www.upstreamonline.com/incoming/article180355.ece:
New MOPSU venture in the works
Malaysia-based Perisai Petroleum is firming up a tripartite joint venture to pursue mobile offshore production and storage unit (MOPSU) projects, according to industry sources.
Perisai will take the lead in the joint venture with a 50% majority stake, while Malaysian fabricator, Kencana Petroleum and Singapore-based Ezra Holdings will each contribute 20% interests, according to a source.
The trio will invest in two MOPSU units to be built based on Perisai’s patented technology. Each unit is said to cost $60 to $80 million.
The MOPSU is a barge-shaped production and storage unit with hydrocarbon processing equipment and living quarters on-board and installed over jack-up legs mounted into the seabed.
A Malaysian tender is understood to have been floated last September for the supply of an 8000 to 9000-tonne MOPSU to be installed in the Sepat project off Malaysia.
Vessel boost for Perisai
PETALING JAYA: Perisai Petroleum Teknologi Bhd expects its plan to acquire a pipe-laying vessel to be a major boost to future revenue and profits, according to company officials.
Based on its internal projection, the acquisition would add as much as 26 sen per share to the group’s bottomline for the year ending Dec 31, 2009 (FY09), after taking into account the vessel’s first full year contribution.
This is calculated based on the existing charter contract secured for the vessel. It also takes into account the group’s enlarged share capital of 294.4 million shares, which includes the 86.4 million new Perisai shares that would be issued as part payment for the proposed acquisition.
A local brokerage estimated Mesdaq-listed Perisai’s net profit for FY07 at RM12.9mil, or 4.4 sen per share. “We expect a drastic improvement in FY08 and FY09 earnings” arising from the acquisition, the brokerage said in an update dated Jan 29.
On Monday, Perisai announced it would acquire Labuan-based SJR Marine (L) Ltd from Mercury Pacific Marine Pte Ltd for US$42mil (RM136.1mil). Post acquisition, Mercury Pacific will own 29.35% of Perisai.
A Perisai filing with Bursa Malaysia yesterday showed that Singapore-registered shipper Mercury Marine is controlled by Datuk Shahrir Abdul Jalil and Datuk Ahmad Redza Abdullah.
SJR Marine owns a 120m long derrick lay barge with an 800-tonne heavy lift crane. The vessel, known as Enterprise 3, is expected to enter service in Malaysian waters in the middle of this year.
Nagendran Nadarajah
Perisai managing director Nagendran Nadarajah told a briefing yesterday the ship would be utilised immediately after it entered service up to the end of next year.
Under the contract between the vessel owner and a major local oil and gas company, Enterprise 3 would be chartered on a bare boat basis for 1,085 days up to the end of 2012.
Nagendran said based on the committed bare boat charter rate of US$95,000 per day subject to a 5% annual escalation, the vessel was projected to earn a minimum of US$115mil (RM373mil) during the tenure of the contract.
“There is also potential to achieve higher revenue by chartering Enterprise 3 to third parties during the uncommitted period,” he added.
Assuming that the vessel is fully booked, total revenue from the vessel could rise to as much as RM550mil during the contract period.
“Enterprise 3 is only contracted for an average 240 days a year, and we believe that in the current market, potential utilisation will exceed this number of days,” chairman Datuk Mohamed Ariffin Aton told the briefing.
Based on the bare boat charter contract, all maintenance and crew costs will be borne by the oil and gas company. Perisai’s expenses are limited to depreciation in the value of the vessel, and interest and insurance charges.
Shares in Perisai rose 3 sen to RM1.58 on heavy volume of 117.7 million shares yesterday.
The oil and gas contractor has over the years evolved from a provider of corrosion prevention services to supplier of vessels and solutions for marginal field development and deepwater activities.
Full Article in The Star , New Straits Times , Berita Harian (in Malay)
Perisai poised to unveil latest deal
PETALING JAYA: Perisai Petroleum Teknologi Bhd will be suspended on Monday pending a material announcement, the Mesdaq-listed company told Bursa Malaysia yesterday.
It is widely believed that the company is planning an acquisition that would lead to a sizeable contract being secured. There is also speculation that a new strategic investor would emerge in the company.
Shares in Perisai had surged 20% over the past two days. The stock climbed eight sen to close at RM1.64 yesterday – a new all-time high.
About a month ago, the company’s top official was quoted as saying that higher oil prices and increasing demand for energy would drive further mergers and acquisitions (M&As) in the oil and gas industry.
Perisai managing director Nagendran Nadarajah also told reporters at the company’s EGM in October last year that Perisai was open to M&A proposals, as long as it added value to the company.
Perisai manufactures corrosion control products and maintains pipes and heat exchanges for the oil and gas industry.
In the market yesterday, oil and gas related stocks were big movers with counters such as KNM Group Bhd and Ramunia Holdings Bhd attracting a lot of investor interest.
Dealers said trading sentiment in the sector received a boost after MISC Bhd’s proposed multi-billion ringgit plan to inject its marine engineering unit into rival Ramunia fuelled fresh talk of further consolidation in the booming oil and gas fabrication sector.
Source: TheStar
Perisai keeps mum on report
Kuala Lumpur: Oil and gas support services company Perisai Petroleum Teknologi Bhd is keeping mum on corporate developments pertaining to talks or the progress of a new major shareholder(s) in the company.
Managing director Nagendran Nadarajah said the company was open to negotiations with parties interested in buying a stake, so long as the deal added value.
However, he did not want to identify any particular parties the company was talking with or place a deadline “We’re always discussing with potential new shareholders,” he said after the company’s EGM yesterday.
He said any negotiations would depend on the right timing and whether it would benefit shareholders.
It is reported that new major shareholders are expected to emerge in Perisai Petroleum pending a major restructuring exercise. They might emerge via Perisai Petroleum’s acquisition of oil and gas assets.
At yesterday’s EGM, shareholders approved the sale of 55% stake in subsidiary Allied Marine & Equipment Sdn Bhd to Worldclass Inspiration Sdn Bhd for RM39.5mil.
Nagendran said the company would focus on deepwater and marginal field developments via its SIRPS (self-installing, relocatable, production and storage) facility, which it was developing with the Atkins Group, a Britain-based engineering consultancy.
According to Aseambankers Equity Research, Malaysia has about 90 hotspots where marginal fields have been identified.
“Malaysia has 1.7 billion of recoverable stock tank barrels in brown or marginal fields and, with the SIRPS facility, we’re convinced that money can be made if a minimum 1,500 barrels a day can be extracted, assuming that it operates 240 days a year,” Nagendran said.
The SIRPS facility would be operational in 2009 and could extract a maximum 3,000 barrels a day.
Nagendran said the company was also planning to collaborate with reservoir and well experts for the development of the marginal fields.
Source : TheStar
Targeting marginal fields
Kuala Lumpur: PERISAI Petroleum Teknologi Bhd will perhaps want to forget last year. That was when two of its vessels were undeployable and one of its contracts was deferred by nine months. Since then, the company has acquired two vessels.
The hitch resulted in its FY06 net profit falling significantly to RM4.18mil, almost five times lower than its FY05 net profit of RM23.23mil. Naturally, the share price tumbled and so did shareholder confidence. The investing fraternity lost faith in the stock because it was felt that the company could not deliver.
After all, prior to that, Perisai had built up much anticipation over its AlphaPRIME system, a modularised, integrated seabed processing and pumping system for use in the exploitation of hydrocarbons. Perisai is the sole licensee in the region for the system developed by British-based Alpha Thames Subsea Ltd.
AlphaPRIME is engineered for deep-sea enhanced oil extraction, but is also capable of doing the job in shallow waters. Independent studies have shown that the use of the high-technology platform would enable oil companies to reduce the cost of extraction of deep-sea oil by between US$2 and US$4 per barrel
Given such promise, Perisai seems to have a winner. Yet, after two years of marketing the system, nothing seemed to have materialised. Investors were getting tired. Sure, Perisai had more than 100 technology patents granted and pending (owned directly and via licensing), but when will that all be translated into its bottom line?.
Source : The Star Full article.
