80% completion on construction phase of major Brazilian project Conferences in 2022: • Achieved operational excellence • High operational uptime performance of 97% • Occupational Safety & Health Award “Gold Class I” by MSOSH in 2022 – FSO Puteri Dulang • Occupational Safety & Health Award “Gold Class I” by MSOSH in 2022 – FSO Orkid • Hibiscus Petroleum Monsoon Safety Campaign Zero Incident Award 2021/2022 – FSO Orkid • Hibiscus Petroleum Logistics Operator HSE & Operational Excellence Award 2021 – FSO Orkid • HSE Best Performance Field 2021 – Vestigo Petroleum Sdn. Bhd. - MaMPU1 (Anjung Kecil) • OPITO Competency Management System Certificate – FSO Puteri Dulang • ISO 29001 to further strengthen IMS OFFSHORE BUSINESS KEY DEVELOPMENTS FOCUSED ON PROJECT EXECUTION BEST IN BUSINESS HSSE PERFORMANCE ENSURED BUSINESS GROWTH THROUGH CONTRACT EXTENSIONS STRENGTHENING INTERNAL CAPABILITIES ENHANCED OUR INTERNATIONAL INDUSTRY PRESENCE INTERNATIONALLY RETAINED OUR SUSTAINABILITY FOCUS HIGH ASSET UPTIME OBU continued to diligently focus on project execution for a major project we have in hand. We progressed with our major FPSO project in Brazil which we obtained in 2020, slated to enter into operation in 2024 and will be leased for 22.5 years. The construction of the Brazilian project’s hull and topsides continued in China and engineering and procurement activities have largely progressed to meet project schedule, cost and quality. By end 2022, we recorded 80% completion on the construction phase, and have put in place mitigation measures to avoid any further delay in project delivery to our client. Leveraging on our strong industry reputation, and long-lasting relationships of mutual trust with our clients, OBU secured contract extensions with our existing clients, to ensure a sustainable pipeline of future work. In 2022, we obtained a one-year contract extension on FPSO Bunga Kertas to April 2023, a six-month contract extension with a follow-on six-month extension for FPSO Ruby 2 from January 2022, and another one-year extension from January 2023. Our existing portfolio of long-term contracts will continue to support the financial performance of the business. OBU has consistently maintained the highest levels of a strong Generative HSSE Culture, in line with prioritising health and safety as an important area of focus. During the year, we obtained multiple awards that underscored our health and safety commitment. The MSOSH awarded FSO Puteri Dulang its first Gold Class Occupational Safety & Health (OSH) Award, while FSO Orkid obtained its third Gold Class OSH Award. FSO Orkid was also awarded the Hibiscus Petroleum Monsoon Safety Campaign Zero Incident Award 2021/2022. As for our major Brazilian project, we recorded a total of 19 million manhours LTI free. Contract extensions based on early client engagements: • 1-year contract extension of FPSO Bunga Kertas from April 2022 • 6 + 6 months Charter Contract extension for FPSO Ruby 2 from January 2022 • 1-year Charter Contract extension for FPSO Ruby 2 from January 2023 We continued to strengthen our internal capabilities as the cornerstone of our high-quality project delivery, as well as the foundations to further our business growth. During the year, OBU added more personnel to our workforce, in order to bring new experience and capability which will further our project delivery and operations in meeting clients’ requirements. In March 2022, we were certified with ISO 29001 which provides platforms and methods to attain excellent levels of operational integrity, sound practices, processes and systems for the design, development, production, installation and service for the petroleum, petrochemical and natural gas industries. This certification will further strengthen our existing Integrated Management System (IMS). OBU continued to expand our visibility in the international offshore sector by participating in several conferences during the year. On behalf of MISC we hosted the Offshore Technology Conference (OTC) Asia 2022 in Kuala Lumpur, Malaysia, held from 22 – 25 March. The biennial conference is an important industry platform where energy professionals meet to exchange and share ideas and insights to promote scientific and technical knowledge for offshore resources and environmental matters. At the conference themed ‘Excellence in Asia: Setting the Pace for Future Energy’, we were able to share our knowledge on how industry players could drive efficiencies towards ensuring a smooth transition to a low carbon future. We also participated in the FPSO World Congress 2022 which took place on 12 – 15 November 2022 in Singapore where we took part in thought leadership sessions and panel discussions on the industry’s transformation roadmap to sustainability and renewable energy. In 2022, OBU continued to focus on achieving sustainability targets and developing renewable and sustainable technology solutions for our existing and future assets. MISC Group has focused on sustainability for a number of years and OBU has contributed significantly to the impressive results to date. We have produced our own OBU Sustainability Strategy, which is closely aligned with the MISC 2050 long range strategy. Through the OBU Sustainability Strategy, we have committed to specific actions across ESG pillars which will be delivered progressively by owners within OBU. The establishment of the New Ventures Technology Department provides us with the launch pad to seek out new sustainability solutions for our existing and future assets. This will future-proof our business in a net-zero world. The team will be examining and pursuing new business lines, energy transition and sustainability projects based on new technologies that will further enhance our sustainability focus and outcomes in 2022 and beyond. The ongoing development of renewable and sustainable solutions that we are exploring are as follow: • Potential new sources of revenue streams in line with MISC 2050 and increasing market demand • Deployment of technology to monitor and reduce GHG emissions on existing and future MISC-operated assets • Development of newbuild hull designs to position MISC as a best-in-market sustainable solutions provider • Development of renewable and sustainability technology solutions In addition to this, OBU has completed our New Build FPSO (NBF) Development Programme to leapfrog competitors’ technology and create competitive advantage. We are actively pursuing the decarbonisation agenda by incorporating sustainable design and technologies into our FPSO designs, as We also obtained the OPITO Competence Management System (CMS) for FSO Puteri Dulang which gives us more control over risk and cost at every step of the competence management lifecycle and contributes to the development of a high performing workforce. OBU continued to maintain high asset uptime, achieving beyond our target performance. Our operational excellence enabled us to maintain safe, reliable and efficient operational uptime performance of >95% as at end 2022. • OTC Asia 2022 • FPSO World Congress 2022 Business Review Business Review 121 120 MISC Berhad Integrated Annual Report 2022
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