Marco Polo Marine Aquires AHTS Vessel ‘MP Prevail’

Marco Polo Marine Ltd , has via its 49.6%-owned subsidiary, PT Pelayaran Nasional Buana Bina Raya TBK, acquired and taken delivery of a newly built 9,000 BHP Anchor Handling Tug Supply (AHTS) vessel from a third party shipbuilder.

The acquisition, which is in line with the group’s expansion plans to entrench its market presence in the fleet management of Offshore Support Vessels (OSVs) in Indonesia, was timely, given the current robust market demand in Indonesia for such a vessel and that it would take at least 18 months to build one.

The Acquisition is funded largely through a vessel loan, with the balance from the proceeds of the Initial Public Offering (IPO) of PT BBR TbK which was concluded in early 2013.

The mid-sized AHTS vessel, named “MP Prevail” is currently undergoing the reflagging exercise to Indonesian flag as there is currently very limited supply of such vessels operating in Indonesia waters.

The vessel, which is equipped with Dynamic Positioning 2 (DP2), a sophisticated computer-controlled system that enables the vessel to maintain its position automatically via satellite controls using advanced propellers systems in tandem with the main engines, has a bollard pull of about 115 metric tons.

Once the abovementioned reflagging exercise is completed, MP Prevail is expected to be chartered to one of the leading oil companies in the region for deployment in Indonesia waters.

Commenting on the Acquisition, Mr Sean Lee Yun Feng, CEO of MPM, remarked: “With the offshore oil and gas exploration sector in Indonesia being at its nascent stage of development, demand for chartering services to be provided by  AHTS vessels is expected to take off strongly in view of the promising growth of the sector coupled with the limited supply of Indonesian-flagged OSVs as a result of the strict enforcement of the Cabotage Principle in Indonesia.

“We are certainly very excited with the Acquisition as it is done at a reasonable price and is well-time to tap on to the present robust demand in Indonesia. The Acquisition is consistent with our Group’s growth plans to expand into the  offshore oil and gas sector while utilizing PT BBR TbK as the platform to entrench ourselves in the Indonesian market. Given the robust demand for OSVs and the gradual and consistent rise in daily charter rates experienced over the past  few months, the Group expects its offshore business to continue to spearhead the growth of its overall chartering revenue”.

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Marco Polo Marine, June 21, 2013