KUCHING: Offshore marine services company Perdana Petroleum Bhd
will opt for acquiring younger, secondhand vessels rather than investing in new builds in its fleet renewal and rejuvenation exercise, the company says.
The interim option presents a cost-effective and flexible alternative, given the complexities of securing bank funding for the new builds, according to managing director Jamalludin Obeng.
Jamalludin said the group is evaluating the approach, taking into consideration whether the secondhand vessels to be acquired meet industry standards, such as age-cap requirements and environmental regulations, in addition to performance capabilities.
Other considerations are if the acquired vessels can be efficiently integrated into the group’s fleet operations with minimal retrofitting, and whether they are economically viable and capable of delivering strong returns on investment.
In 2022, Petroliam Nasional Bhd (PETRONAS) extended the age limit for offshore supply vessels (OSVs) from 15 years to 20 years in the face of ageing fleets among OSV owners that support oil and gas exploration and production in Malaysian waters.
“Mindful of its existing fleet approaching the 20-year industry age-cap for anchor handling tug supply (AHTS) vessels and 25-year age-cap for accommodation work barges (AWB) and accommodation workboats (WB), Perdana is actively pursuing fleet renewal and rejuvenation strategies to enhance the group’s competitiveness and market leadership.
“While new vessels remain part of Perdana’s long-term growth strategy, the interim option of acquiring younger, secondhand vessels presents a cost-effective and flexible alternative, given the complexities of securing bank funding for new ships,” Jamalludin said in the company’s annual report for last year.
However, he said there was renewed interest from financial institutions in vessel financing after a prolonged slowdown in lending activity as more long-term contracts are being awarded by oil majors to vessel chartering firms.
Perdana, which is a subsidiary of Dayang Enterprise Holdings Bhd, is the owner-operator of a fleet of 14 OSVs, comprising eight AHTS vessels, five AWB and one WB.
The fleet has a total accommodation capacity of 1,951 passengers at full operation.
Perdana’s AHTS vessels were built between 2008 and 2010 whereas the AWB and WB built in 2013 and 2014, respectively.
Jamalluddin said the introduction of a modernised OSV fleet will strengthen Perdana’s market reach and capabilities, enabling the group to better service its clients.
“Perdana will take a practical and cautious approach in evaluating the various funding options available while remaining open to potential strategic acquisitions or joint ventures to revitalise its asset portfolio.
“The financial feasibility of new vessel acquisitions will also be diligently assessed by the group in alignment with its long-term operational needs and optimal asset classes.”
On the outlook for the OSV chartering business this year, Jamalluddin said it was positive yet challenging due to geopolitical tensions, fluctuating oil prices, emerging global trade conflicts and evolving market conditions.
He said geopolitical risks, particularly in the Middle East, and trade wars may cause oil-price volatility and disrupt supply chains, potentially impacting offshore service demand. These factors might influence investment decisions and project timelines.
According to Jamalluddin, the group observed a growing trend in ongoing tenders, across various OSV asset classes, indicating strong continuing demand for vessels.
“Daily charter rates are expected to rise further due to vessel shortages in the South-East Asian region,” he said.
