CM Energy Tech Co., Ltd. (CM-ENERGY) announced that wholly-owned subsidiary TSC Offshore Pte. Ltd. will team up with Oceanstar Marine & Offshore Investment Pte. Ltd. (OSE) and three Malaysian industry veterans to establish Oceanstar FPSO Asset 01 Sdn. Bhd., a special-purpose vehicle created on 30 March 2026 to execute the Sepat Integrated Redevelopment Project for PETRONAS Carigali.
Key terms of the Joint Venture • Capital base: RM5.93 million, split among five shareholders—OSE 29%, TSC Offshore 20%, Rozali Bin Hamzah 22%, Andy Goh Beng Kwang 22% and Chuah Choong Keat 7%. • Governance: A five-member board with OSE appointing four directors (including the chairman) and TSC Offshore one director; board resolutions require a majority vote. • Transfer lock-up: No share transfers permitted within the first 36 months without written consent from OSE and TSC Offshore.
Funding Structure On 12 May 2026, TSC Offshore and OSE signed a Funding Investment Agreement committing USD79.54 million of equity to the joint venture. TSC Offshore will contribute USD15.91 million (20%), inclusive of its RM1.19 million initial capital, funded from internal resources. OSE will provide the remaining USD63.63 million (80%), covering its own 29% stake directly and financing the Malaysian partners’ combined 51% share via shareholder loans. Equity injections will be aligned with the project’s construction milestones; TSC Offshore’s payments are contingent on the concurrent funding of the other partners.
Strategic Rationale The joint venture will contract China Merchants Heavy Industry (Jiangsu) Co., Ltd. (CMHI Jiangsu) for the engineering, procurement and construction of a new floating production storage and offloading (FPSO) vessel to replace existing facilities at the Sepat oilfield offshore Malaysia. CMHI Jiangsu is a wholly-owned unit of China Merchants Shipbuilding Industry, CM-ENERGY’s controlling shareholder, rendering the arrangements connected transactions under Hong Kong’s Listing Rules.
Management views the partnership as a cost-effective way to access Malaysia’s growing oil-and-gas and petrochemical markets, leverage OSE’s local EPCIC expertise and embed CM-ENERGY’s proprietary offshore equipment—such as E-House, ICSS and deck cranes—into the FPSO build. The company expects the project to broaden its Southeast Asian footprint, diversify revenue streams and support long-term growth.
Regulatory and Shareholder Approvals Because the aggregated percentage ratios for the agreements exceed 5% but remain below 25%, the formation and funding of the joint venture constitute a discloseable and connected transaction. Independent shareholder approval will be sought at an extraordinary general meeting (EGM); CM Shipbuilding Industry and its associates, which hold 47.18 % of CM-ENERGY’s issued shares, will abstain from voting. An Independent Board Committee and Red Sun Capital Limited have been appointed to advise minority shareholders. A circular detailing the transaction is slated for dispatch on or before 12 June 2026.
Impact on Financial Statements The joint venture will not be consolidated into CM-ENERGY’s accounts, as TSC Offshore will hold a 20 % stake. The USD15.91 million equity contribution will be financed from internal resources, and no guarantees or additional shareholder loans are currently required from CM-ENERGY.