SINGAPORE - Malaysia-based oil and gas company M3nergy Berhad launched its latest floating production, storage and offloading (FPSO) vessel at Singapore's Keppel Shipyard on Tuesday morning.

Named Ratu Nusantara, the vessel will be anchored at the Petronas-operated Bukit Tua oil and gas field in Indonesia on a five-year contract, with an option to extend its services for another two years.

The vessel has a processing capacity of 25,000 barrels per day of oil and 77 million standard cubic feet per day of gas, as well as a storage capacity of 630,000 barrels of processed oil.

Keppel Shipyard had secured the contract from M3nergy Berhad last September to convert the vessel from a 1994-built tanker, which, along with another project, was worth a total of $190 million. 

The new vessel comes in as part of M3nergy Berhad's plans for expansion by strengthening its FPSO component, which contributes to more than half its annual turnover.

"M3nergy Berhad, in 2012, bid for its first flagship FPSO project in Indonesia as a measure to exemplify its seriousness about establishing a shore base in the region," said chairman Tan Sri Sukarti Wakiman.

"The success of our new project is a reflection of our competitive edge and focused commitment, resulting in progress and sustainable growth of the company."

Chief Minister of Sabah Datuk Seri Musa Aman, who was at the event, said that the project has been "catalytic in further promoting the oil and gas sector in the region".