Singapore-based Vallianz Holdings Limited (Vallianz) has signed new contracts extending the charter duration for 19 of its offshore support vehicles deployed to an existing customer in the Middle East
The new contracts with a large national oil company (NOC) in the Middle East is valued at about US$458mn. At present, Vallianz has 15 anchor handling tug supply vessels and four platform supply vessels supporting the offshore oil and gas operations of the NOC. With the new time charter contracts, these vessels will continue to be deployed to the NOC until June 2018, with an option to extend for two more years until June 2020.
Some modifications have been made in the new deal, compared to Vallianz’s previous contracts with the NOC. Significantly, the charter rates have been revised downwards.
Ling Yong Wah, CEO of Vallianz, said, “While charter rates for our vessels in the new contracts have been revised lower by about 10 per cent 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. This further strengthens our relationship with the customer, and also reflects our focus on maintaining a resilient business model for the company to ride through business cycles.”
Earlier this month, the company had secured a time charter worth up to US$300mn to supply two self-elevating platforms to support the NOC’s offshore oil production activities for up to seven years.
Vallianz owns a fleet of 39 vessels operating in the Middle East, Asia Pacific and Latin American markets. In addition, its 49 per cent-owned associate company, PT Vallianz Offshore Maritim, operates another 20 vessels in the cabotage-protected market in Indonesia.
