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Coastal Contracts bags contracts worth $34m, eyes Iran business

Coastal Contracts bags contracts worth $34m, eyes Iran business
Coastal Contracts Bhd has netted contracts worth a total of MYR130m ($34.1m) involving the sale of two offshore support vessels (OSVs) and six low-end vessels.

The OSV yard said in a stock market announcement that these contracts would raise the group's order book to about MYR3.38bn, with rig and OSV orders making up MYR1.97bn of this. With all of these orders expected to be delivered this year, Coastal Contract's revenue stream is expected to be boosted significantly this year, it added. Coastal executive chairman Ng Chin Heng said the latest batch of orders for 2015 would strengthen the group’s “war chest” in a lacklustre market.

“Recent lifting of economic sanctions on oil-rich Iran may slow down the recovery of oil price. However, we believe the lifting of sanction on Iran could benefit the Coastal group given that some of our customers had good working relationship with Iranian oil and gas companies in the past.

“Iran’s inability to get access to new technologies forced it to cancel many projects to explore new fields. In view of this, post-sanction Iran could create more opportunities for the OSV market,” Ng noted.