The deal involves an engineering, procurement, construction, installation and commissioning (EPCIC) contract for a 1.2 million tonnes per annum floating liquefied natural gas (FLNG) facility in West Papua, Indonesia.
In a filing with Bursa Malaysia today, the group said the contract price is set at US$962.8 million (RM4.54 billion), which would exceed US$1 billion (RM4.71 billion), including reimbursable costs of up to US$70 million (RM329.72 million).
It noted that under this contract, Wison is expected to construct the FLNG facility at its shipyards in Nantong and ZhouShan, China.
“After passing the yard performance test, the FLNG facility will be towed to its final destination located at Teluk Bintuni, West Papua, where the final commissioning test will be carried out.
“The project duration is estimated to be 27 months from the execution of the EPCIC contract followed by an 18-month warranty period,” it said.
It said the target sail-away date from the ZhouShan shipyard would be in the second quarter of 2026.
Genting also pointed out that this would be Wison’s third contract to construct the FLNG facilities, the first facility in Indonesia and the ninth in the world.
“The project will be funded through internally generated funds and project financing.
“The company is in an advanced stage of securing project financing from a group of Chinese and international lenders,” it said.
In a separate filing with the bourse, Genting’s indirect subsidiary Genting MZW Pte Ltd today inked a share sale and purchase agreement with Jineng International Energy Co Ltd to acquire its 49% equity shares in SDIC Jineng (ZhouShan) Gas Power Generation Co Ltd for about US$14 million (RM65.94 million).
SDIC Jineng is the project company established to own and develop a 2 x 745-megawatt gas-fired power plant located at ZhouShan, Greater Shanghai Area in Zhejiang Province, China, where SDIC Power Holdings Co Ltd is the 51% majority shareholder.
Additionally, Genting announced that another indirect unit, Genting Sanyen (M) Sdn Bhd, has signed a heads of agreement with SDIC Power for joint cooperation in SDIC Jineng, following the successful completion of the proposed acquisition.
“The company estimates that a further pro-rata equity investment of approximately US$46 million (RM216.67 million) will be required to target commercial operation in 2025,” it said.
It added that the purchase price and equity investment, totalling approximately US$60 million (RM 282.61 million), would be fully funded by internally generated funds.
At the close of trading, Genting’s share price was down by one sen or 0.21% at RM4.69, giving the group a market capitalisation of RM18.18 billion.