Vallianz clinches $300m vessels charter contract in the Middle East

Both the offshore vessels are scheduled to be deployed from the third quarter of 2015 for a period of five years, with the existing customer having an option to extend the charter for another two years until 2022.

The vessels will be used to perform well servicing for the national oil company’s offshore platforms and well structures in the Arabian Gulf, Vallianz announced.

“This is the first time the group will be supplying this type of self-elevating platforms,” said Ling Yong Wah, ceo of Vallianz.

“This contract reinforces Vallianz’s superior advantage as a premier supplier of offshore support vessels to the national oil company, and validates the group’s ongoing strategy to widen our product offering with more specialised vessels,” he added.

Singapore-listed Vallianz noted that despite the weak oil price environment, production activities in the Middle East market remain vibrant.

Gulf oil producers, led by Saudi Arabia, are widely anticipated to maintain their current oil output as preservation of market share remains their top priority. As a result, industry analysts expect E&P spending in the Middle East to show a double-digit increase in 2015 compared to 2014.

Ling said: “With the majority of our orderbook comprising long term vessel charters in the Middle East region, we believe Vallianz has a resilient business model to successfully navigate through this period of market volatility.”

At present, Vallianz has 26 AHTS vessels and PSVs operating in the Middle East.

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.

Rawabi-Vallianz is exploring opportunities to expand beyond its core operations in the Middle East.