JOHOR BARU: Yinson Holdings Bhd sees the global oil and gas (O&G) sector offering good business opportunities especially demand for the marine-related transportation services.
Chairman and executive director Lim Han Weng said demand for the marine-related transportation services would always be there as long as there were exploration activities taking place in the O&G sector worldwide.
He said in view of the good prospects from the sector, the company has decided to further expand its activities in the marine transportation services, which it ventured in 2008.
“This move is part of our diversification to reduce our dependency on the land transportation services which are becoming more competitive,” he said after the company EGM yesterday.
At the EGM, shareholders approved the proposal to expand business in the marine transportation activities by acquiring an offshore support vessel (OSV) for RM68mil.
The 3,000 tonnes OSV would be used to transport goods and personnel to and from offshore structures such as offshore oil platforms.
Lim said competition in the land transportation sector was becoming more intense over the years with over 1,000 players competing for the same pie.
He added that there were limitations in the sector as local service providers usually cover only Malaysia, Singapore and Thailand.
Meanwhile, executive director Lim Chern Yuan said that prospects was good in the OSV services segment as there were less than 50 service providers with just 100 OSVs worldwide.
“Demand for the OSV services is good especially in Australia, India, Middle Eastern and Southeast Asian countries,” he said.
Chern Yuan said demand for the OSV services in the region would increase especially in Indonesia, Malaysia and Vietnam with more new O&G exploration activities were expected to take place in the coming years.
He said Yinson has already been awarded two long-term OSVs contracts this year – the first job is the seven-year contract from PetroVietnam Technical Services Corp, a unit of Vietnam state-owned Vietnam Oil and Gas Group.
The second is to assist and service the operations of Petronas Carigali Vietnam Ltd, in collaboration with Kencana Nautilus Sdn Bhd, a subsidiary of Kencana Petroleum Bhd.
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