Key developments In the year under review, our Offshore Business segment delivered the Mobile Sea Base PL Tun Azizan in the month of May as well as completed the decommissioning and demobilisation of the aging facility, the FSO Cendor in October. The segment also embarked on a project to deploy a Marginal Marine Production Unit (MaMPU). The MaMPU I was delivered in September 2015 marking MISC’s maiden entry into the marginal oil field development arena. The year also saw the Offshore Business segment making excellent strides forward on the asset performance front achieving uptime of 99.67%. Both the FPSO Espirito Santo and FPSO Kikeh exceeded their contractual uptime obligations which led to both assets being entitled for a performance bonus from their clients. In terms of Health, Safety and Environmental (HSE) performance, we achieved zero lost time injury frequency (LTIF) and a zero total recoverable cases frequency (TRCF) rate. Moving forward Given the current low oil price scenario, the floating production market is expected to remain stagnant. With tendering and contract execution activities slowing down dramatically, competition is expected to ramp up. To meet the challenges of a fastchanging playing field, MISC will work to develop product offerings that are creative, innovative and cost effective. This need not necessarily take the form of new assets but could involve the provision of innovative solutions to increase the production capabilities of existing assets. The next two years will see us focusing our efforts on inorganic growth. We will do this by looking for distressed assets, particularly those attached to good third party contracts as well as exploring merger and acquisition opportunities with distressed companies on the local and international fronts. Upon the oil price recovering, we will refocus our efforts on organic growth. MISC BERHAD Annual Report 2015 63
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