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Monday July 21, 2008

Tanjung Offshore expands fleet

TANJUNG Offshore Bhd is on an expansion mode with nine offshore support vessels (OSVs) valued at RM418mil scheduled to be delivered in stages until early 2010.

Managing director Omar Khalid told Starbiz that the fleet expansion was propelled by high demand from the local as well as international oil and gas (O&G) industry.

“There is demand from oil majors all over the world, but operating in Malaysia is more cost-efficient,” he said, adding that six of its seven OSVs were in Malaysian waters while one was in Vietnam.

Omar Khalid

Under the fleet expansion plan, Tanjung Offshore will receive two anchor handling tug and supply (AHTS) vessels, Tanjung Puteri 1 and Tanjung Puteri 2 valued at RM48mil each next month.

The company expects the delivery of a well-testing vessel and a tug and utility boat valued at RM48mil and RM32mil respectively in the fourth quarter of the year.

An AHTS costing RM42mil will join its fleet in the third quarter of next year while four AHTS worth RM50mil each are scheduled for delivery in January 2010.

“We plan to have more AHTS vessels as it can tow oil rigs to location and anchor them up in shallow and deepwater fields.

“With the rampant oil exploration and production today, the demand is going up,” said Omar.

On its oil rig business, Omar said its jack-up drilling rig, THE 208, supplied to Murphy Oil would start operation in September. The rig is on a two-plus-two year contract worth RM500mil.

In March, the company commissioned its self elevating relocatable facility that is also on a two-plus-two year contract worth RM200mil.

Omar said the company's contract with Petrofac Ltd for the supply of its mobile offshore production unit (MOPU) has been extended for another five years and would end in 2013.

The MOPU has resume full operation this year after difficulties in unexpected cost increases and repairs last year.

The MOPU, which is a cheaper alternative to conventional platforms for smaller and marginal oil fields is now working at Chendor field, off the coast of Terengganu.

“All these investments and developments are expected to support stronger earnings for the company from the second half of the year,” Omar said.

Established in 2005, the Tanjung Offshore group is involved in the provision of integrated services to both upstream and downstream activities in the O&G industry.

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