Malaysia: Construction Progresses on Nam Cheong’s Two PSVs

Nam Cheong Limited, one of the leading global marine players and Malaysia’s largest shipbuilder of Offshore Support Vessels (OSVs), is currently building two vessels specially designed for transportation of supplies and equipment to and from offshore installations.

Dedicated to the construction and engineering of complex, sophisticated and environmentally-friendly OSVs, Nam Cheong Offshore Pte Ltd and Nam Cheong International Ltd, both wholly-owned subsidiaries of Nam Cheong, signed an agreement in September 2011 to provide the Malaysian offshore support specialist Bumi Armada Navigation Sdn Bhd with two 3,000 dead weight ton Platform Supply Vessels (PSVs).

The 75m DWT 3000 PSVs, equipped with Dynamic Positioning 2 system, are powered by 2 x 3000 PS dual fuel main engine driven Azimuth Thrusters and 2 bow thrusters reaching a speed of 13 knots minimum at ballast condition. The main engine features a front PTO shaft generator and a FiFi pump. The vessels include a 700m² deck area with the capacity to carry 1200mt of cargo and the approximate deadweight at maximum draft is 3000mt. Designed to accommodate 50 crew members, with the estimated endurance capacity of 28 days, the two PSVs are being built as part of the Group’s built-to-stock series in one of Nam Cheong’s subcontracted yards in China. The ABS Class PSVs are to be delivered during the first half of 2012.

This agreement accounts for Nam Cheong’s second sale in 2011 to the country’s largest owner and operator of OSVs. The Group’s first PSV was sold to Bumi Armada in April same year.

Last year, Nam Cheong recorded eight vessel sales in just over two months. The company also announced a joint venture agreement with three major oil and gas service providers in the region that resulted in the sale of a multi-purpose support vessel with a contract value of RM88.0 million (approx S$35.8 million2). In late August, The Group secured a contract for a 5,220bhp AHTS vessel in late August and it acquired contracts in an en-bloc sale for three 5,150bhp AHTS vessels in late July.

“We are delighted that we have surpassed last year’s order wins,” said Mr. Leong Seng Keat, Nam Cheong’s Executive Director. “The stream of order wins that Nam Cheong has experienced in the past two months confirms again our market prediction for a continued demand for AHTS vessels and a rising demand for PSVs. Momentum for the offshore marine industry remains brisk, especially in Malaysia, as oil prices remain high and oil majors continue to invest in exploration and production (“E&P”) activities in the region.”

Mr. Leong added: “Anything above US$55 a barrel in oil prices is very comfortable for oil majors to continue to deploy assets in shallow water. That’s why we continue to see demand for smaller AHTS vessels that is driven by shallow water oil and gas activities. But at the same time, we are catering to future expansion of activities in deeper waters with our PSV builds.”

Operating one of the largest shipbuilding yards for OSVs in Malaysia, Nam Cheong Limited has 21 vessels currently undergoing its shipbuilding program and scheduled for completion in 2012. The company is also building the Rolls-Royce UT 755 CD diesel electric platform supply vessel, including the WSD 800 multi-purpose platform supply vessel that was also contracted by Bumi Armada. The vessel is due to be launched and commissioned by fall 2012.

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Shipbuilding Tribune Staff, January 17, 2012; Image: namcheong