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Offshore oil/gas expansion spawns RM6 billion investments in shipping

The recent boom in oil and gas sectors has created an unprecedented demand for offshore supply shipping, oil tanker and gas carriers as reflected in the entry of several new players and new investments in shipping.
 
A major supply-side response has been in investments in petroleum and gas tankers and also in the technically-more-sophisticated deepwater vessels for the offshore sector.
 
Recent survey reveals that more than three billion ringgit worth of ships and vessels have been ordered or delivered in the first six months period of this year.
 
Bumi Armada Bhd, a leading offshore marine transportation services provider, announced investments worth RM1.2 billion to acquire 17 deepwater offshore vessels.
 
The support ships will be delivered is stages by end of 2008 from Nam Cheong Dockyard Sdn Bhd and other regional yards from Singapore and China. The deliveries will enhance Bumi Armada total oil and gas vessels to 57.
 
Meanwhile, Scomi Marine Bhd has also announced RM650mil expansion plan to acquire six deep-water anchor-handling tugs and supply boats and three offshore support vessels.
 
Scomi Marine anticipates receiving four of the AHTS vessels next year while the remaining two will be delivered in 2009 and 2010 to cope with oil and gas industry demands in its key markets in Malaysia, Australia, India and Indonesia said its group chief executive officer, Shah Hakim Zain.
 
The second board company in Bursa Malaysia, ALAM Maritim Resources Bhd (AMRB) will be taking delivery of nine offshore support vessels (OSV) valued at RM200mil to RM250mil.
 
The nine vessels that consist of three anchor handling tugs, five supply vessels and one DP2 vessel.
 
With the deliveries the company would have a total of 24 offshore supply vessels with an average age of two to three years.
 
Petra Perdana Bhd has proposed to buy a new anchor handling/offshore support vessel from S K Line Co Ltd for RM49.7mil.
 
The proposed purchase was in line with the company's fleet renewal plan to provide marine support services to offshore oil and gas facilities.
 
The vessel was expected to be delivered by June 2008.
 
In the tanker sector, Gagasan Carriers Sdn Bhd has announced its RM461.4mil investment plan on eight new chemical tankers.
 
The company has placed orders for three new building in Korea amounting to RM209.7mil, two in China for RM104.9mil and the three in Malaysia for RM146.8mil and all these ships will be delivered by 2009.
 
“This is timely and important move as palm oil has to be carried only on chemical tankers since January 2007 and there is a need to provide sufficient capacity to carry our own products said,” its managing director Captain Johari Mohd Noh.
 
Besides that Global Carrier Bhd has also announced on the acquisition of two 7,000 dwt clean product tankers for RM70 million from China's Ningbo Dong Fang Shipyard Co Ltd.
 
These ships will be delivered by stages by August 2008. Plans are in pipeline for Global Carrier to acquire four more ships by 2010.
 
Nepline Berhad has also announced on its expansion plan to acquire one unit of 7,000 dead weight clean double hull product tanker and an Aframax tanker.
 
Perhaps the largest investments come Petronas, which earlier this year took delivery of two LNG tankers and has on order for a further four more tankers being built in Korea at a cost of about US$180 million a piece.
 
The delivery in 2007 and 2008 will bring the total to 28 LNG tankers, keeping its world leadership in LNG fleet ownership and operation.
 
The national oil corporation which through its wholly owned subsidiary owns and operators AET Inc Ltd, ordered size Aframax oil tankers for delivery in 2010 and 2011.
 
The investments in the tanker and gas trades are in addition to its recent investments in floating production, storage and offloading facilities.   

               

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