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Swiber and Vallianz both benefit from Middle East orders

Swiber and Vallianz
NYK is to invest in Emas Chiyoda Subsea (ECS), currently a 50/50 joint venture company owned by Ezra and Chiyoda

Swiber Holdings Ltd has secured three new contracts for projects with a total value of US$215 million in the Middle East and Southeast Asia regions. Darren Yeo, deputy group chief executive of Swiber, said, “Despite the ongoing oil market volatility and challenging conditions in the offshore oil and gas industry, Swiber continues to demonstrate our ability to successfully secure new projects. In fact, one of these new projects represents an important breakthrough for Swiber into the lucrative Middle East market.”

Swiber was awarded an engineering, procurement, construction and installation (EPCI) contract by a European oil major to perform pipeline replacement work in Qatar, marking the group’s first offshore construction project in the Middle East. The company has commenced the engineering phase of the project, which is scheduled for completion in the third quarter of 2017. “This job is for a repeat customer with whom we have worked closely on numerous projects across the globe. It is a testament of our proven experience and execution capabilities that the customer is once again entrusting Swiber with this project in Qatar,” said Mr Yeo.

Swiber recently also won new contracts for a further two projects in Myanmar and Vietnam, which solidifies its market position in Southeast Asia. The company is participating in a consortium that will carry out EPCI of two wellhead platforms, associated pipelines and tie-ins for a project off the coast of Myanmar for a major Southeast Asian oil and gas company. This project commences immediately and is expected to be completed by the first quarter of 2018. The customer has options to award an additional two wellhead platforms.

The third contract involves the provision of transport and installation services for a full field development project in the waters off Vietnam. Swiber has recently started work on this job, which is targeted for completion in the third quarter of this year.

“While Southeast Asia has seen a slow-down in offshore oil and gas activities over the past couple of years, it remains an important market for Swiber, as our projects in this region contributed US$117.1 million or 14.1 per cent of the group’s revenue in 2015. Our project wins in Myanmar and Vietnam will solidify our established market presence in the region,” said Mr Yeo.

The latest contracts have lifted Swiber’s orderbook to around US$1.2 billion. The contracts are expected to contribute to the group’s financial performance in the current financial year ending 31 December 2016. A US$100 million engineering, procurement, installation and construction contract awarded to Swiber in February 2016 has been retendered by the customer due to changes in the project work scope and schedule. Swiber said it will soon be submitting its bid for this project.

“As an established provider of EPCI services for shallow-water oil and gas field development, Swiber remains in a good position to weather the current industry downturn. We continue to see opportunities in our target markets and are actively working on new tenders to grow our pipeline of projects,” Mr Yeo said. The group is bidding for projects with a combined value of US$3.4 billion, made up of US$1.65 billion for Africa/Europe, US$750 million for Latin America, US$550 million for Southeast Asia and South Asia and US$450 million for the Middle East. On 6 June 2016, Swiber also fully redeemed its Series 16 S$130 million (US$96.2 million) fixed rate notes.

A new contract worth US$210 million has sent Vallianz Holdings chartering orderbook to over US$1 billion to a new record of US$1.2 billion, with mainly long-term contracts stretching through to 2025. The group secured new long-term charter contracts for the supply of 13 offshore support vessels (OSVs) to a national oil company in the Middle East. The OSVs will be chartered for up to seven years. Vallianz expects the OSVs to be deployed progressively in the oil company’s oil fields from the second half of 2016.

Vallianz chief executive Ling Yong Wah said, “This new award speaks volumes of the group’s operational capabilities, as the award of an entire tender comprising a large number of vessels to a single offshore marine service provider is rare and normally reserved for a contractor that has an exceptional and proven track record. Our ability to secure contracts for 13 OSVs in a single tender is a testament of our customer’s continued trust and confidence in the group’s core competencies.” The contracts follow the award of a US$63 million contract from the same charterer for two anchor-handling tug/supply and safety standby vessels for up to seven years.

Mr Ling added, “With the addition of these new charter contracts in the Middle East, we have further strengthened our orderbook and improved the group’s future revenue visibility. Vallianz will continue to reinforce our superior market position in the Middle East where offshore oil and gas projects remain active. We are presently bidding for charter contracts with a combined value of US$1.5 billion, mainly for projects located in the Middle East.”

Singapore-based OSV operator Pacific Radiance posted revenues of US$18.4 million and made a net loss of US$6.8 million in the first quarter of 2016 but says it remains focused on overcoming the downturn. The company said the performance of its subsea OSV businesses was affected by significantly weaker market conditions due to the severe fall in oil prices but says it plans to push on with strategic and tactical initiatives to overcome industry challenges.

The company reported US$18.4 million in revenue for the three months ended 31 March 2016 compared to US$31.5 million for same quarter in 2015. The 42 per cent year-on-year decline in revenue was due mainly to the significantly weaker operating conditions in the oil and gas market. The group saw lower charter rates and/or utilisation of its fleet.

Pacific Radiance executive chairman Pang Yoke Min said, “The sector outlook remains challenging and uncertain over the medium term. We will stay focused on enhancing cash flow management whilst executing the strategic and tactical initiatives we have put in place to sustainably overcome the downturn.”

Ezra Holdings Ltd, Chiyoda Corporation and Nippon Yusen Kabushiki Kaisha (NYK) have entered into a binding agreement for NYK to invest in Emas Chiyoda Subsea (ECS), which is currently a 50/50 joint venture company owned by Ezra and Chiyoda. Through the acquisition of shares from Ezra and Chiyoda, NYK will own 25 per cent of ECS, with Ezra and Chiyoda retaining 40 per cent and 35 per cent shareholdings, respectively, upon completion of the transaction.

In a statement, the companies said that, although Chiyoda’s complementary expertise added depth and breadth to ECS when it was formed in March 2016, NYK’s participation “is expected to augment collective knowhow and expertise in global expansion strategies, harnessed through NYK’s 130-year experience in ship management and operation.”

NYK president Tadaaki Naito said, “I am delighted that we can offer another range of services in the offshore segment by joining ECS. With reliable partners, I believe this opportunity will create a strong alliance, and I am excited that we will be able to contribute to worldwide offshore development, including that in our home country.”

President and chief executive of Chiyoda Corporation Shogo Shibuya said, “Under our medium-term management plan, Chiyoda has been focusing on expanding its business into the offshore and upstream fields. After the establishment of Emas Chiyoda Subsea in March 2016, I am excited that Ezra, Chiyoda and NYK reached agreement for NYK to join ECS. I am confident that the participation of NYK will accelerate the growth of ECS’s capability as a leading offshore EPCI contractor.”

Group chief executive and managing director of Ezra Holdings Lionel Lee said, “We are delighted at the latest development that has resulted from continued strategic interest in the Emas Chiyoda Subsea business and would like to extend a warm welcome to NYK as an integral partner to the Emas Chiyoda Subsea family. This investment by yet another established name in the offshore and marine space is a strong authentication of the strength, global standing and long-term prospects of our subsea business.”

The closing of the joint venture transaction is subject to the approval of Ezra’s shareholders and the satisfaction of other customary closing conditions. Assuming these conditions are met, the transaction is expected to close by the third quarter of 2016.

Swiber Holdings Ltd has secured three new contracts for projects with a total value of US$215 million in the Middle East and Southeast Asia regions. Darren Yeo, deputy group chief executive of Swiber, said, “Despite the ongoing oil market volatility and challenging conditions in the offshore oil and gas industry, Swiber continues to demonstrate our ability to successfully secure new projects. In fact, one of these new projects represents an important breakthrough for Swiber into the lucrative Middle East market.”

Swiber was awarded an engineering, procurement, construction and installation (EPCI) contract by a European oil major to perform pipeline replacement work in Qatar, marking the group’s first offshore construction project in the Middle East. The company has commenced the engineering phase of the project, which is scheduled for completion in the third quarter of 2017. “This job is for a repeat customer with whom we have worked closely on numerous projects across the globe. It is a testament of our proven experience and execution capabilities that the customer is once again entrusting Swiber with this project in Qatar,” said Mr Yeo.

Swiber recently also won new contracts for a further two projects in Myanmar and Vietnam, which solidifies its market position in Southeast Asia. The company is participating in a consortium that will carry out EPCI of two wellhead platforms, associated pipelines and tie-ins for a project off the coast of Myanmar for a major Southeast Asian oil and gas company. This project commences immediately and is expected to be completed by the first quarter of 2018. The customer has options to award an additional two wellhead platforms.

The third contract involves the provision of transport and installation services for a full field development project in the waters off Vietnam. Swiber has recently started work on this job, which is targeted for completion in the third quarter of this year.

“While Southeast Asia has seen a slow-down in offshore oil and gas activities over the past couple of years, it remains an important market for Swiber, as our projects in this region contributed US$117.1 million or 14.1 per cent of the group’s revenue in 2015. Our project wins in Myanmar and Vietnam will solidify our established market presence in the region,” said Mr Yeo.

The latest contracts have lifted Swiber’s orderbook to around US$1.2 billion. The contracts are expected to contribute to the group’s financial performance in the current financial year ending 31 December 2016. A US$100 million engineering, procurement, installation and construction contract awarded to Swiber in February 2016 has been retendered by the customer due to changes in the project work scope and schedule. Swiber said it will soon be submitting its bid for this project.

“As an established provider of EPCI services for shallow-water oil and gas field development, Swiber remains in a good position to weather the current industry downturn. We continue to see opportunities in our target markets and are actively working on new tenders to grow our pipeline of projects,” Mr Yeo said. The group is bidding for projects with a combined value of US$3.4 billion, made up of US$1.65 billion for Africa/Europe, US$750 million for Latin America, US$550 million for Southeast Asia and South Asia and US$450 million for the Middle East. On 6 June 2016, Swiber also fully redeemed its Series 16 S$130 million (US$96.2 million) fixed rate notes.

A new contract worth US$210 million has sent Vallianz Holdings chartering orderbook to over US$1 billion to a new record of US$1.2 billion, with mainly long-term contracts stretching through to 2025. The group secured new long-term charter contracts for the supply of 13 offshore support vessels (OSVs) to a national oil company in the Middle East. The OSVs will be chartered for up to seven years. Vallianz expects the OSVs to be deployed progressively in the oil company’s oil fields from the second half of 2016.

Vallianz chief executive Ling Yong Wah said, “This new award speaks volumes of the group’s operational capabilities, as the award of an entire tender comprising a large number of vessels to a single offshore marine service provider is rare and normally reserved for a contractor that has an exceptional and proven track record. Our ability to secure contracts for 13 OSVs in a single tender is a testament of our customer’s continued trust and confidence in the group’s core competencies.” The contracts follow the award of a US$63 million contract from the same charterer for two anchor-handling tug/supply and safety standby vessels for up to seven years.

Mr Ling added, “With the addition of these new charter contracts in the Middle East, we have further strengthened our orderbook and improved the group’s future revenue visibility. Vallianz will continue to reinforce our superior market position in the Middle East where offshore oil and gas projects remain active. We are presently bidding for charter contracts with a combined value of US$1.5 billion, mainly for projects located in the Middle East.”

Singapore-based OSV operator Pacific Radiance posted revenues of US$18.4 million and made a net loss of US$6.8 million in the first quarter of 2016 but says it remains focused on overcoming the downturn. The company said the performance of its subsea OSV businesses was affected by significantly weaker market conditions due to the severe fall in oil prices but says it plans to push on with strategic and tactical initiatives to overcome industry challenges.

The company reported US$18.4 million in revenue for the three months ended 31 March 2016 compared to US$31.5 million for same quarter in 2015. The 42 per cent year-on-year decline in revenue was due mainly to the significantly weaker operating conditions in the oil and gas market. The group saw lower charter rates and/or utilisation of its fleet.

Pacific Radiance executive chairman Pang Yoke Min said, “The sector outlook remains challenging and uncertain over the medium term. We will stay focused on enhancing cash flow management whilst executing the strategic and tactical initiatives we have put in place to sustainably overcome the downturn.”

Ezra Holdings Ltd, Chiyoda Corporation and Nippon Yusen Kabushiki Kaisha (NYK) have entered into a binding agreement for NYK to invest in Emas Chiyoda Subsea (ECS), which is currently a 50/50 joint venture company owned by Ezra and Chiyoda. Through the acquisition of shares from Ezra and Chiyoda, NYK will own 25 per cent of ECS, with Ezra and Chiyoda retaining 40 per cent and 35 per cent shareholdings, respectively, upon completion of the transaction.

In a statement, the companies said that, although Chiyoda’s complementary expertise added depth and breadth to ECS when it was formed in March 2016, NYK’s participation “is expected to augment collective knowhow and expertise in global expansion strategies, harnessed through NYK’s 130-year experience in ship management and operation.”

NYK president Tadaaki Naito said, “I am delighted that we can offer another range of services in the offshore segment by joining ECS. With reliable partners, I believe this opportunity will create a strong alliance, and I am excited that we will be able to contribute to worldwide offshore development, including that in our home country.”

President and chief executive of Chiyoda Corporation Shogo Shibuya said, “Under our medium-term management plan, Chiyoda has been focusing on expanding its business into the offshore and upstream fields. After the establishment of Emas Chiyoda Subsea in March 2016, I am excited that Ezra, Chiyoda and NYK reached agreement for NYK to join ECS. I am confident that the participation of NYK will accelerate the growth of ECS’s capability as a leading offshore EPCI contractor.”

Group chief executive and managing director of Ezra Holdings Lionel Lee said, “We are delighted at the latest development that has resulted from continued strategic interest in the Emas Chiyoda Subsea business and would like to extend a warm welcome to NYK as an integral partner to the Emas Chiyoda Subsea family. This investment by yet another established name in the offshore and marine space is a strong authentication of the strength, global standing and long-term prospects of our subsea business.”

The closing of the joint venture transaction is subject to the approval of Ezra’s shareholders and the satisfaction of other customary closing conditions. Assuming these conditions are met, the transaction is expected to close by the third quarter of 2016.

The Original Posted by Offshore Support Journal

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