Singapore-based offshore oilfield service provider Vallianz Holdings said on 20 July that has won extensions of existing charter contracts that are worth up to USD458 million.
The contracts are for 15 anchor handling tug supply (AHTS) vessels and four platform supply vessels (PSVs) that are chartered to a national oil company in the Middle East.
The contracts extend the charterhire to June 2018, with options to extend the hire up to June 2020.
Vallianz CEO Ling Yong Wah said, “Being cognizant of the current market situation in the offshore oil and gas industry, we took a pro-active approach and engaged our customer to review the existing vessel charters.”
However, the charter rates for the extended hires have been reduced by about 10%.
Ling said that in the current market, companies have to be flexible to stay in business.
“The (rate) adjustment is less than the rate cuts seen in the offshore marine industry. More importantly, it has enabled us to lengthen the charter duration for half of our owned vessels to 2020, including options. This further strengthens our relationship with the customers and also reflects our focus on maintaining a resilient business model to ride through business cycles,” said Ling.
Vallianz owns 39 offshore support vessels that are operating in the Middle East, Asia Pacific and South America.