PT Berlian Laju Tanker Tbk (BLT), the third largest chemical tanker operator in the world, is moving into the Indonesian offshore support vessel market in a joint venture (JV) with Miclyn Express Offshore (MEO).

With a 50% stake in the proposed JV company named PT BLT Miclyn Offshore (PT BMO), BLT will make a foray into the Indonesian offshore support vessel market that has an estimated market size of US$200–250 million ($279–348 million) in revenues.

Supply vessels, accommodation platforms, rig transport vessels, seismic vessels, anchor handling tugs and crewboats will provide support for upstream offshore activities in Indonesian waters like the Java Sea, Makassar Strait, South Sumatra, Irian Jaya, Natuna Sea.

Both parties aim to incorporate PT BMO as soon as possible with the intention for completion by end December 2009.

“The new JV will be well positioned to benefit from the Indonesian offshore support vessel markets and this will provide significant business opportunities for the JV as Indonesia has set ambitious target to increase its oil production and therefore has moved more towards offshore and deeper water explorations which has been largely untapped for a long period of time. In addition, more efforts have been made by government by offering reinvestment into brown and marginal fields for maximizing oil recovery,” says BLT in an SGX statement.

“More importantly, Indonesian authority has made serious progress in the implementation of the cabotage rule. Under the cabotage principle, only domestic ship owners (with Indonesian flags) are allowed to operate in Indonesian waters. BLT is well placed to benefit from the implementation of such rule being the largest Indonesian shipping company,” it adds.