MISC said that Petronas and Hyundai Heavy Industries have agreed to enter into a novation agreement with the company for the novation of shipbuilding contracts between Petronas and HHI to the company, for the construction and delivery of the newbuild LNGCs.
In conjunction with the novation agreement, Petronas via its unit, Petronas LNG, has also agreed to enter into time charter parties for the charter of the newbuild LNGCs, the company said in a statement.
The newbuild LNGCs are expected to be delivered to MISC from September 2016 to December 2017. The transaction will involve an expenditure of approximately $1.1 billion. The TCPs are for 15 firm-years for each vessel commencing upon delivery of the newbuild LNGCs to PLSB and will have a charterer’s option for extension for another five years.
In a separate transaction, MISC said that PLSB has agreed to extend the charter of five refurbished Puteri Class LNG carriers on a time charter basis for another ten years for each refurbished LNG carrier. The charters commence from the date of delivery of each refurbished vessel to PLSB, which are expected to be from September 2015 to September 2017.