Malaysian offshore vessel owner Coastal Contracts has sold two offshore support vessels and six low-end vessels for MYR130 million (USD34 million).
The transaction takes the company’s cumulative sales to MYR1.97 billion, with vessels pending delivery up to 2017.
The outstanding orderbook includes a jack-up gas compression service unit to service a charter contract for Mexican state-owned petroleum company Pemex.
Coastal Contracts executive chairman Ng Chin Heng said, “I am glad to announce that Coastal Group has secured its second batch of vessel sales orders for fiscal year 2015. These latest contract wins will strengthen our war chest in such a lacklustre market.”
Related news:Coastal Contracts boasts record quarter
Crude oil continues trading in a bearish mode due to a glut in the global market, caused mainly by the booming shale oil industry in the United States and the slowdown of global economic growth, hurting demand for offshore support vessels as oil companies cut back on oil exploration and production.
The recent lifting of economic sanctions on oil-rich Iran may slow down the recovery of oil prices as this could worsen the glut.
Ng said, “However, we believe the lifting of sanctions on Iran could benefit Coastal Group given that some of our customers had good working relationship with Iranian oil and gas companies in the past.”