Malaysian offshore services provider Alam Maritim Resources is planning to diversify into subsea services, including a complete work programme of underwater, structural and topside inspection, repair and maintenance, particularly in the international markets through a joint venture company.

Malaysia’s Alam Maritim is taking drastic measures to stem losses and keep itself viable amid the prolonged slump in the oil and gas (O&G) market, with plans to halve its fleet size as it predicts continued difficult conditions.

The Malaysian offshore oil and gas industry continues to feel the pinch of smaller budgets from national oil company Petronas in particular, with the offshore supply vessel (OSV) players especially hard hit among the listed companies that have recently reported results.

Malaysian offshore services company Alam Maritim Resources hopes to at least maintain its current revenue of MYR200m ($46.8m) to MYR300m for 2017, however warned that it would take two to three years to return to profitability.

Alam Maritim Resources has won a MYR99m ($22.3m) two-year subsea inspection, maintenance and repair (IMR) services contract.

Malaysia’s Alam Maritim Resources will buy a offshore vessel at a price of $60m from China’s Wellspring Marine Trading.

Malaysia’s Alam Maritim has posted lower earnings in the first half compared to a year ago due mainly to lower average vessel utilisation rate.

Private equity players are starting their exit strategies, among them CIMB Private Equity unit Armada Investment which had a 51% stake in a joint venture (JV) with a unit of offshore supply vessel (OSV) player Alam Maritim Resources formed at the depths of the financial crisis in 2008.

Malaysia's Alam Maritim has won a MYR39m ($12m) contract for the provision of underwater services for a local oil and gas company.