Nam Cheong braces for 2 waves of Malaysian orders

19 contracts up for grabs.

According to OSK DMG, following the first wave of 24 vessels chartered in 1H13, awarded by Petronas Carigali’s drilling division, it is expecting two more waves.

OSK DMG also noted that the second wave will involve 34 vessels by Petronas’ Exploration & Production division, of which 19 contracts have not been awarded. The third wave will be from the HookUp-and-Commissioning (HUC) program, involving 30 to 40 vessels.

Here's more:

Orders for these two waves have already started flowing to NCL. Last week, Malaysia’s Perdana Petroleum ordered two Accommodation Work Barges (AWBs) from NCL which we believe are slated for HUC work (Perdana is 26% owned by Dayang, believed to be a front runner for Shell’s share of the HUC work.)

In similar fashion, we expect more orders to flow through to NCL from the upcoming charter awards.

Playing PSV musical chairs. Early April, Petrobras mopped up 24 3,000dwt PSVs on 4+4 year contracts, effectively taking a large number of PSVs out of circulation for a third of their useful lives.

Saudi Aramco is following with tenders out now for 16 PSVs. Word in the industry is that Pemex is looking to fix up to 18 PSVs also in the 3,000dwt range before the near-term ready supply runs out.

Unknown to the financial markets, there is a PSV-rush going on, and NCL is a key beneficiary with a ready supply of PSVs for near-term delivery.