$35m fire sale: Why Malaysia’s DNeX is ditching its idle 300,000-barrel
Dagang Nexchange offloads 2007-built FPSO Excalibur to MISC at a 66% discount to book value, booking a $5.86m gain.
Malaysian energy firm Dagang Nexchange (DNeX) has finalized the sale of its idle floating production storage and offloading vessel, the Excalibur, to domestic player MISC for $35 million in cash. The transaction will be handled by the UK division of Ping Petroleum, DNeX’s oil and gas subsidiary with a 90% ownership stake.
The Excalibur, a cylindrical FPSO built in 2007 with a design capacity of 300,000 barrels, has been laid up at Scotland’s Port of Nigg. While an independent valuation by ABS Consulting estimated its fair value between $22.5 million and $43.5 million, the vessel’s net book value stands at $13.25 million. The deal is projected to yield a pro forma gain of $5.86 million after capital gains tax and the recovery of previously claimed allowances.
“A prudent and proactive strategic decision, taking into account changes in the fiscal, regulatory and development landscape in the UK offshore energy sector.”
DNeX·Corporate statement
Next steps for the vessel: DNeX
After tax deductions, DNeX expects to receive approximately $14.11 million in net cash proceeds, which will be allocated to working capital needs.
The Excalibur is set to be delivered on November 5, 2026, at Malaysia Marine and Heavy Engineering’s facility in Pasir Gudang. MISC will cover all transportation costs from Scotland to Malaysia, where the FPSO’s future role remains unconfirmed.
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