MMM buyout buoys Trenergy's FPSO plans

Trenergy (Malaysia) Berhad has proposed to purchase a 32% stake in Malaysian Merchant Marine (MMM) Berhad for US$21 million. This block of 32 million shares is believed to be from MMM's major shareholder and managing director Sharazi Sha'ari's stake in the company.

This purchase will allow Trenergy to expand its FPSO capabilities in lieu of its plans to provide FPSO facilities to the new Kikeh oil field off the coast of Sabah. Currently, the company only operates a single vessel - Perintis - that does not have the capacity for the task.

MMM has a fleet of 12 vessels - mostly car carriers and tankers - and three of them are expected to be converted into FPSOs, which will then be leased to Trenergy at favourable prices.