Two long-term PSV charters for Otto Marine

Otto Marine Limited has announced that it has secured two long-term charter contracts for two platform service vessels (PSVs) to an oil major in Australia.

Under the contracts, two 4000 dwt capacity PSVs will be mobilised to Australia in March – April 2015.

Two contracts

Each of the two contracts secured comprises of a firm charter period and option, adding the total charter tenure of up to 36 months. Total contract value for the firm period and options for the two vessels is approximately AU$80 million (or approximately US$64 million).

With the latest orders, the group’s net order book stood at approximately more than US$400 million as at 31 January 2015.

Low oil prices – but still demand for supporting vessels

Commenting on the charters, Mr. Michael See, Group Executive Director said: “With the over 50% plunge in oil prices, investors were cautious with the industry as a whole. While oil companies are cutting back on their capital expenditure budget, certain operational activities are still active as usual; hence there is still demand for supporting vessels from trusted business partners.

The new PSV charter contracts not just demonstrated our strong customer base and close relationships with leading global oil and gas companies, both NOCs and IOCs, but also the fact that our vessels and services are valued by our customers as we provide our utmost quality services to our customers.

We work towards building up a leading OSV charterer in Indonesia, Australia, Mexico, Africa and beyond, a position that offers the benefit of geographical diversification, and helps us stand relatively intact in an adverse market. We will also continue to do our utmost amid one of the most challenging period for the industry, deliver the best possible service to our customers, and further enhance their trust and loyalty.”

Adapted from press release by Cecilia Rehn

Published on 09/02/2015

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