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Rawabi-Vallianz eyes second OFSSV contract, looks to expand to Egypt

Rawabi-Vallianz eyes second OFSSV contract, looks to expand to Egypt
Singapore’s Vallianz Holdings is hoping to repeat its contract win for offshore floating storage and supply vessel (OFSSV) in the Middle East with its partner Rawabi Holdings, and is looking to expand into Egypt.

Vallianz, through its 50-50 joint venture Rawabi-Vallianz Offshore Services, has a strong presence in the Middle East offshore market, operating more than 20 OSVs on long term charter for a national oil company (NOC) in Saudi Arabia.

Ling Yong Wah, ceo of Vallianz, said the company is aiming to win a second long term charter award for OFSSV with its repeat NOC customer in Saudi Arabia, where the offshore oil and gas production and exploration market is still seeing reasonably good levels of contract values up for grabs.

Back in December 2014, Vallianz secured a five-year time charter award worth $97m with the NOC to supply a customised OFSSV. The OFSSV will be the first of its kind to be deployed in the Middle East when the contract commences before end-2015.

“We hope to announce more of such similar contracts for OFSSV, targeting the same customer,” Ling said.

Osman Ibrahim, group president and ceo of oil and gas services conglomerate Rawabi, added that Rawabi-Vallianz has sensed opportunities for expansion into Egypt, in view of the recent huge gas field discovery by Eni at Zohr Prospect.

“The aim of the joint venture with Vallianz has always been to look at market expansion beyond just Saudi Arabia,” he said.

The plunge in oil prices, however, has impacted OSV charter rates, leading to Rawabi-Vallianz agreeing to a 10% cut in rates when it extended the charter duration for 19 OSVs in July to the Saudi Arabia NOC.

Ling said that looking ahead, regardless of the oil price movements, the recontract with the NOC has provided the company with visible revenue for five years, and what remains is for the company to control costs if it wants a stronger bottomline.