Coastal locks two OSV contracts

Coastal Contracts’ subsidiary, Coastal Offshore (Labuan) Pte Ltd has secured contracts for the sales of two Offshore Support Vessels (OSV) for an aggregate value of approximately RM197 million ($54.1 million).

According to the company, both of these vessels were sold to its new customers in Mexico.

As of to date, the Group’s order book is approximately RM2.81 billion ($771.3 million). Of this, the vessels sales order book constituted RM1.46 billion ($400.8 million). The balance order book comprised RM1.35 billion ($370.6 million) for the Group’s first Jack-up Gas Compression Service Unit (JUGCSU) charter contract for Petroleos Mexicanos (Pemex).

All of these vessels are expected to be delivered in 2015 and 2017.

Ng Chin Heng, the Executive Chairman of Coastal, commented:

“I am pleased to announce that Coastal Group has secured its first batch of vessel sales orders for FY2015. With these latest sales, our vessel sales order book has further increased to a high of RM1.46 billion, balanced with our long term charter contract for Pemex project.

“We are pleased to have the opportunity to enter business relationships with our new customers in Mexico. We continue to widen our global presence as a reliable shipbuilder and O&G player in Mexico. Mexico is an active market with a variety of projects on going and in the pipeline. There are some concerns due to sliding oil prices, but most of the projects are currently on schedule.

“By virtue of our successful crisis management experience from the past, I believe we can weather the downturn as well as capture new market opportunities during this challenging time.”

Ng Chin Heng further added: “Despite current signs of gloom, Coastal Group envisages the medium to long term fundamentals of O&G industry to remain positive given the hardly substitutable nature of petroleum. O&G business is not a short term game, and the window of opportunity may well be very short before the next cycle begins.”

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