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Vallianz renews OSV charter contracts, sees rates revised down 10%

Vallianz renews OSV charter contracts, sees rates revised down 10%
Singapore’s Vallianz Holdings has inked new contracts valued up to $458m on lengthening the charter duration for 19 PSVs, but the charter rates have been revised down 10% due to the offshore market downturn.

Vallianz presently has 15 AHTS vessels and four PSVs supporting the offshore oil and gas operations of a Middle East national oil company, an existing customer of Vallianz.

“Being cognizant of the current market situation in the offshore oil and gas industry, we took a proactive approach and engaged our national oil company customer to review the group’s existing vessel charters,” said Ling Yong Wah, ceo of Vallianz.

“While charter rates for our vessels in the new contracts have been revised lower by about 10% on average, the adjusment is less than the rate cuts seen in the offshore marine industry,” Ling said.

“More importantly, it has enabled the group to lengthen the charter duration for half of our fleet of owned vessels to year 2020 including options,” he added.

With the new time charter contracts, which modify certain terms in Vallianz’s previous contracts with the oil firm, these OSVs will continue to be deployed to the customer until June 2018, with an option to extend for two more years until June 2020.

Vallianz presently owns a fleet of 39 vessels operating in the Middle East, Asia Pacific and Latin American markets. In addition, the group has a 40%-owned associate company, PT Vallianz Offshore Maritim, which operates another 20 vessels in the cabotage-protected market in Indonesia.

Vallianz also has a joint venture firm named Rawabi-Vallianz, in partnership with Saudi Arabian oil and gas services firm Rawabi Holdings, with operations in the Middle East.

Last week, Vallianz secured a time charter valued at up to $300m to supply two self-elevating platforms for work in the Middle East.