a day ago
Nam Cheong secures RM204.1 million OSV contracts in Middle East and Japan
Nam Cheong is actively moving into offshore renewables and environmental marine services while continuing to serve its core oil and gas customers.
KUCHING (June 27): Sarawak-based offshore support vessel (OSV) provider Nam Cheong Limited has secured RM204.1 million worth of new charter contracts for three vessels with operations starting in 2025 for up to two years and options for further extension.
The group in a statement yesterday said the contracts involve one anchor handling tug supply vessel (AHTS) and two fast crew boats.
Two of the vessels will be chartered to Marine Operations for Environmental Services (SAIL) in the Middle East to support coastal environmental protection projects.
The third will be chartered to a contractor involved in offshore wind farm operations in Japan.
SAIL, established in 2022, is a wholly owned subsidiary of the Saudi Investment and Resource Company (SIRC) and the Public Investment Fund of Saudi Arabia. The company focuses on rapid oil spill response and shoreline monitoring using advanced technology and best industry practices.
Nam Cheong said the move into green offshore projects reflects the strength and flexibility of its fleet in supporting diverse offshore activities.
'Meanwhile, our expansion into the Middle East and Japanese waters reflects a strategic move to diversify the Group's geographical exposure and reduce concentration risk.
'Collectively, these enhance the resilience of our fleet operations, especially amid
the evolving market landscape and ongoing macroeconomic uncertainties,' it said.
With these new charters, Nam Cheong now has 24 vessels under long-term contracts, making up 63 per cent of its fleet.
The group aims to raise this to 70 per cent, a target it says will boost earnings visibility and operational stability.
It further noted that demand for OSVs is rising beyond the traditional oil and gas sector as the global energy mix shifts.
In response, the group is actively moving into offshore renewables and environmental marine services while continuing to serve its core oil and gas customers.
'This approach positions the group to capture a broader set of long-term opportunities across multiple sectors and geographies,' it added.
Chief executive officer Leong Seng Keat said the latest contract wins will expand the company's reach across different offshore sectors and regions, adding to a portfolio that currently serves only the oil and gas industry.
'While Oil and Gas remains a core market for us, we are seeing growing potential in offshore renewables and marine environmental services.
'Leveraging a modern and advanced fleet, we are building a more balanced charter mix to maximise fleet utilisation while capitalising on the global energy transition trend to drive sustainable returns.
'Our target of having 70 per cent of the fleet on long-term contracts not only provides earnings stability, but also gives us the flexibility to pursue attractive opportunities as they emerge in the evolving markets,' he said. corporate news Nam Cheong Limited offshore support vessel
