Executive chairman and ceo Dennis Ling was quoted as saying that the company is in talks with potential joint venture partners to charter OSVs and could start making purchases soon.
Hubline shuttered its fledgling oil and gas (O&G) support services division amid the market downturn in 2008. Its two newly ordered AHTSs were sold for a MYR20m ($6.3m) profit and the division was put on ice.
Although still in the planning stage, Ling revealed the company could be buying anchor handling tug supply (AHTS) ships, standby vessels and accommodation barges in anticipation of a surge in demand for O&G support services, backed by Petronas’ five-year, MYR300bn investment to reverse Malaysia’s declining crude oil production.
Ling feels the time is right for Hubline to make a second attempt at O&G, with operational and technical teams ready to jump straight in. “It will be a natural progression for us," he said.
Although Ling declined to say if any capital expenditure has been earmarked for O&G, he noted that the charter fees will be “more than enough” to offset the required investments.
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