Vallianz Signs $458mln Contracts to Extend OSV Charters
Singapore's Vallianz Holdings has signed new contracts worth up to US$458 million (S$628 million) that involve lengthening the charter duration of 19 of its offshore support vessels (OSV) with an existing customer in the Middle East.
The 15 anchor handling tug supply vessels and four platform supply vessels will continue to be deployed to the customer until June 2018, with an option to extend for two more years until June 2020.
However, the fast growing provider of offshore support vessels and integrated marine solutions to the oil and gas industry said that the charter rates for the vessels in the new contracts have been cut by 10 per cent on average.
"While charter rates for our vessels in the new contracts have been revised lower by about 10 per cent on average, the adjustment is less than the rate cuts seen in the offshore marine industry," Vallianz chief executive officer Ling Yong Wah said in a statement.
"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 said.
"This further strengthens our relationship with the customer, and also reflects our focus on maintaining a resilient business model for the Group to ride through business cycles," he added.
Currently, the 19 vessels support the offshore oil and gas operations of the customer, which is one of the world's largest national oil companies (NOC).
Following the newly secured contracts, the group’s order book has been boosted to a record US$968 million with time charters stretching up to 2022.
In addition, the group has a 49%-owned associate company, PT Vallianz Offshore Maritime, which operates another 20 vessels in the cabotage-protected market in Indonesia.
