SINGAPORE (May 29):  Nam Cheong, the Malaysia-based builder of OSVs (offshore support vessels), says subsidiary SKOSV Sdn Bhd has clinched long-term chartering contracts for three OSVs worth RM80 million ($26.4 million) with Malaysian oil majors.

The contracts also come with an option for extension that is worth RM50 million in total, bringing the group’s chartering orderbook to RM295 million including RM140 million worth of option for extension.  

All three vessels will be used to service works on floating LNG facilities and other production operations in Malaysian waters until 2022, with the optional extension period running until 2024.

In a Wednesday filing, the group says its latest contract wins reinforces its strategy to grow its vessel chartering segment.

“With the OSV industry steadily gaining pace, our focus for growth now shifts to our 32-strong fleet as we bolster our chartering operations to capture the gradually recovering market,” says Leong Seng Keat, CEO of Nam Cheong.

“We are steadily scaling up our capabilities and expertise to better service oil and gas players’ offshore support needs, with an eye on other business opportunities in the offshore marine industry,” he adds.

Shares in Nam Cheong closed 12.5% higher at 0.9 cent on Tuesday.