Nam Cheong secures orders for three OSVs

One 5,150 bhp AHTS vessel was sold to Norway’s Vega Offshore Group and two 6,500 bhp AHTS vessels were each sold to Netherlands’ Vroon BV and an unnamed Asian customer.

“The regional and global OSV industry continues to see good demand for shallow water OSVs, despite some softening of oil prices,” said Leong Seng Keat, ceo of Nam Cheong.

“As evidenced by the securing of these orders which has helped buoy our orderbook to a healthy level of approximately MYR1.9bn ($580.9m), we continue to be a beneficiary of the robust growth in the shallow water segment,” he added.

These three contract wins are on the back of five vessel sales to PT Pelayaran Nasional Bina Buana Raya tbk (BBR) secured during the same month, bringing the total orders in September to eight which are collectively worth about $126m.

BBR is an indirect subsidiary of Singapore’s Marco Polo Marine. Nam Cheong has entered into a binding Heads of Agreement with Marco Polo Marine for a proposed investment of about $30.7m in BBR, of which Nam Cheong may own up to 30% of BBR’s enlarged share capital.

As part of the agreement and proposed investment, BBR had agreed to purchase the five OSVs from the Malaysian shipbuilder.

All of the eight OSVs are being constructed as part of Nam Cheong’s build-to-stock series in the group’s subcontracted yards in China. The vessels are scheduled for delivery in 2014 and 2015.