Vallianz Scores US$115 Million in New Charters
Wednesday 24 May 2017
Singapore’s Vallianz Holdings has secured long-term charter contracts valued at up to US$115 million, for four vessels in new markets.
These contracts were awarded by a national oil company (NOC) in the Middle East, as well as two offshore marine services companies based in Egypt and Turkmenistan respectively.
The contracts also marked Vallianz’s entry into two new markets in the Middle East and Central Asia. The group clinched its first contract with an Egyptian company for a three-year charter of one offshore support vessel (OSV) which has commenced operations in the Red Sea.
The firm will also be commencing charter of another OSV at the end of May 2017 under a new contract secured with an offshore chartering company based in Turkmenistan. This OSV will be deployed in the Caspian Sea for three years.
Under its contracts with the NOC, Vallianz will supply two maintenance and accommodation OSVs for five years, with the customer having an option to extend the charter for another two years. These vessels will be used to support the NOC’s maintenance operations and accommodation requirements for its offshore oil and gas activities in the Arabian Gulf.
These two vessels, which will be added to the group’s current fleet of 52 OSVs, are scheduled to commence charter progressively from the first half of the financial year ending 31 March 2018.
CEO Ling Yong Wah said, “We are pleased that the group has started to make headway in our strategy to increase penetration in other target markets in the Middle East region. Besides the Middle East region, our first contract win in Turkmenistan will also enable the group to access a new market in Central Asia.
“For the new contracts with the NOC, the maintenance and accommodation vessels is a new vessel type which will broaden the spectrum of service offerings that we provide to our existing customer," he added.
These contracts bring the Vallianz’s chartering services order book to approximately $1.03 billion in aggregate, comprising primarily long-term charters which include two-year extension options stretching up to 2025. The contracts with the NOC are expected to contribute to the group’s financial performance from 1H FY2018.