In addition TAS Offshore believes that the demand for shallow water OSVs will remain firm. Managing director Lau Nai Hoh said the group aimed to enhance its market share growth by focusing on shipbuilding activities and prospecting for new markets.
"In addition, our build-to-stock business model is progressing well and has propelled the group to a favourable position to meet the market demand for OSVs and shorter delivery time required by buyers.
"Currently, we have a total value of about RM500 million of built-to-stock," he said.
TAS Offshore had started outsourcing the construction of OSVs to an established shipyard in China several years ago while the smaller vessels like tugboats, landing craft and harbour tugs are still built at its Sibu shipyard.
Lau said the new OSVs under construction included three jointly funded by TAS Offshore and Chinese businessman Chan Baihang in their joint venture TA Ventures (L) Ltd. This involved a MYR122m investment to build and sell three AHTS vessels, of which Chan will contribute 40% and TA Offshore, through its stake in TA Ventures, the rest.
Lau said although crude oil price had fallen from $110 to about $95 per barrel now, this would still continue to spur oil majors to maintain, if not increase, the strong expenditures on exploration and particularly, production.
"Consequently, the increase in demand for modern jack-up rigs entering the market will result in more and stronger demand for offshore platform support and anchor handling tug supply vessels.
"We also expect some of these offshore developments to come from Indonesia, Myanmar and Malaysia itself," he said.
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