Vallianz Bags USD 458 Mln in Charter Renewals
Singapore’s offshore support vessel provider Vallianz Holdings Limited has penned new contracts valued up to USD 458 million that have lengthened the charter duration for 19 of its OSVs.
The OSVs are currently deployed to an existing customer in the Middle East, which is one of the world’s largest national oil companies, according to Vallianz.
The group presently has 15 Anchor Handling Tug Supply (AHTS) vessels and 4 Platform Supply Vessels (PSV) supporting the offshore oil and gas operations of the said client.
With the new time charter contracts, which modify certain terms in Vallianz’s previous contracts with the NOC, these vessels will continue to be deployed to the customer until June 2018, with an option to extend for two more years until June 2020.
“Being cognizant of the current market situation in the offshore oil and gas industry, we took a proactive approach and engaged our NOC customer to review the group’s existing vessel charters,” said Chief Executive Officer of Vallianz, Ling Yong Wah.
“While charter rates for our vessels in the new contracts have been revised lower by about 10% on average, the adjustment is less than the rate cuts seen in the offshore marine industry. More importantly, it has enabled the group to lengthen the charter duration for half of our fleet of owned vessels to year 2020 including options.”
“With the new contracts secured in July this year, our current order book has been boosted to nearly USD 1 billion, which is a record level in our corporate history and marks a new milestone for the group. It also reflects the group’s ability to overcome the prevailing industry headwinds. Our order book comprises mainly of long term charters that now stretch up to 2022, thereby improving visibility and stability of the Group’s future revenue streams,” Lang added.
Vallianz presently owns a fleet of 39 vessels operating in the Middle East, Asia Pacific and Latin American markets.