Nam Cheong has secured US$47.5 million ($60.60 million) worth of additional offshore support vessel (OSV) charter contracts which will start in 2025 and last two years, with options for further extension, according to a bourse filing on June 27.

 

The contracts cover three OSVs, including anchor handling tug supply vessels (AHTS) and fast crew boats. Among three vessels, two will be chartered to Marine Operations for Environmental Services (SAIL) in the Middle East to support environmental preservation projects. SAIL specialises in monitoring and responding swiftly to oil spills along the Saudi Arabian shorelines.

 

The remaining vessel will be chartered to an offshore wind farm contractor in Japan.

 

Nam Cheong says that the deployment of these three vessels signals its penetration into green offshore projects which &ldquo highlights the capability and adaptability of our fleet to operate across diverse offshore operations" .

 

It adds that its expansion into the Middle East and Japanese waters reflects a strategic move to diversify its geographical exposure and reduce concentration risk.

 

With these three vessels secured under charter, Nam Cheong now has a total of 24 vessels operating under long-term contracts, representing 63% of its entire fleet. Nam Cheong says that this marks its continued progress towards the strategic target of having 70% of the fleet under long-term charters, further enhancing our earnings visibility and operational stability.

 

&ldquo While Oil and Gas remains a core market for us, we are seeing growing potential in offshore renewables and marine environmental services. Leveraging a modern and advanced fleet, we are building a more balanced charter mix to maximise fleet utilisation while capitalising on the global energy transition trend to drive sustainable returns,&rdquo says Leong Seng Keat, CEO of Nam Cheong.