Swissco signs $119M worth of charter contracts

  • Business & Finance

Swissco Holdings Limited has entered into a joint venture with Union Offshore Ltd, a company incorporated in the Republic of the Marshall Islands. The joint venture has secured a charter contract for up to a seven-year period to support an oil company in Asia Pacific.

The value of this contract is worth up to US$115 million. The joint venture has entered into a Memorandum of Agreement to acquire and own an offshore service unit to meet the requirements of the charter contract.

The offshore service unit is expected to be deployed initially in the offshore oil & gas fields in Asia Pacific around 1st quarter 2015 after its refurbishment and upgrading.

Swissco said that the charter is expected to have a positive impact on the Group’s earnings per share or net tangible assets per share for FY 2015.

The Group has also secured another 12-month charter contract for a multipurpose vessel in the Middle East. The total value of the contract is worth approximately up to US$3.87 million.

Kelvin Tang, Group Chief Investment Officer of Swissco, said: “The acquisition by the Group and the completion of this joint venture mark another key milestone in the history of Swissco. The award of the long term charter contract is a testament of our successful strategy in acquiring cost-efficient rigs and operating in high-demand areas. With our experience in Latin America, we are confident that this partnership will further strengthen our expansion in the upstream of the exploration and production sector.”

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