Dagang Nexchange Bhd (Dnex) has proposed to dispose of its floating production storage and offloading (FPSO) vessel, Excalibur, to MISC Bhd for US$35 million (RM142.2 million) in cash.
In a filing with Bursa Malaysia, Dnex said its 90%-owned Ping Petroleum Ltd’s wholly-owned subsidiary, Ping Petroleum UK PLC, had entered into a memorandum of agreement with MISC for the proposed disposal.
The proposed disposal is expected to generate a pro forma gain of US$5.86mil, or RM23.81mil.
The proposed disposal is expected to generate a pro forma gain of US$5.86 million, or RM23.81 million, after taking into account capital gains tax and the recovery of capital allowances previously claimed on the vessel.
Dnex said Excalibur currently carries a net book value of US$13.25 million, or RM53.83 million, on the company’s books.
An independent valuation conducted by ABS Consulting placed the vessel’s fair value at between US$22.5 million and US$43.5 million, suggesting that the proposed disposal price falls within a reasonable range relative to its assessed worth.
The FPSO, built in 2007 and designed with a capacity of 300,000 barrels, is currently laid up at the Port of Nigg in Scotland, having ceased active operations for some time.
The proposed sale marks a strategic move for Dnex as it continues to streamline its portfolio of assets within its oil and gas operations, with the transaction expected to provide the group with additional cash proceeds while realising a gain from the disposal of a non-operational vessel.
