CM-ENERGY (00206) announced that on March 30, 2026, its wholly-owned subsidiary, TSC Offshore, entered into a joint venture agreement with other partners to establish a joint venture, in which TSC Offshore will hold a 20% stake. The purpose is to execute a related project by entering into an EPC shipyard contract with China Merchants Heavy Industry (Jiangsu). On May 12, 2026 (after trading hours), TSC Offshore entered into a capital investment agreement with OSE, under which TSC Offshore agreed to make a proportional equity contribution of $15,908,175 (including initial capital contribution) to the joint venture.

Strategically located in Southeast Asia, Malaysia serves as a crucial gateway to the ASEAN, Middle East, and Australia/New Zealand markets. The country boasts a stable political environment, with the government actively encouraging the development of the oil, gas, and petrochemical industries. Coupled with policy support for oil and gas projects in the East Coast Economic Region, Malaysia is an ideal location for such initiatives.

OSE successfully secured the related project in 2025. It will provide FPSO leasing, operation, and maintenance services (including the provision of a suitable vessel) for the Sepat Integrated Redevelopment Project in Malaysia, which was awarded by PETRONAS Carigali Sdn. Bhd. (Petronas). The Sepat oil field is located offshore Malaysia and is developed and wholly owned by Petronas, a major Malaysian state-owned oil company consistently ranked among the Fortune Global 500.

The project primarily involves replacing existing equipment at the Sepat field with a new FPSO. The joint venture partners intend to jointly undertake the project through the establishment of the joint venture. As part of the arrangement, the joint venture is expected to enter into an EPC shipyard contract with China Merchants Heavy Industry (Jiangsu), under which the latter will provide EPC services for the FPSO to the joint venture.

The board of directors believes that establishing the joint venture will enable the group to participate in a major project and expand its business footprint in Malaysia and the ASEAN region, while assuming only limited capital commitments and risks. This approach will allow the group to maintain sound risk management and cash flow conditions and will benefit the group's long-term financial performance.