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Vallianz enters burgeoning Indonesia OSV market

10th November 2014

Vallianz Holdings is proposing to acquire a 49 per cent stake in PT Swiber Berjaya (PTSB) for USD 17.5m in order to gain entry into Indonesia’s offshore support vessel (OSV) market

Vallianz enters burgeoning Indonesia OSV market
Capital expenditure in the sector is expected to rise 32.6 per cent year-on-year to USD 25.6bn in 2014, according to Indonesia’s oil and gas regulatory body, SKK Migas

“This is a major step forward for the group,” said Darren Yeo, chief executive officer of Vallianz. “PTSB is an established OSV operator with a strong track record. The acquisition provides Vallianz with a platform to gain immediate access to the cabotage-protected OSV market in Indonesia, and will enable us to ride on the burgeoning prospects of the country’s offshore oil and gas market.”

The group will be acquiring the 49 per cent equity interest in PTSB from Swiber Holdings.

The remaining 51 per cent in PTSB will continue to be held by PTSB’s Indonesian shareholder.

Upon completion of the acquisition, Swiber will continue to benefit from PTSB through its direct shareholding of 23.36 per cent in Vallianz.

Established in 1996, PTSB owns and charters OSVs to support the oil and gas exploration and production activities of oil majors and national oil companies in the Indonesian waters.

It operates a young and diversified fleet of 18 OSVs comprising mainly anchor handling tug vessels (AHT), anchor handling tug supply vessels (AHTS), flat top barges (FT barges) and accommodation work barges (AWB). To address the demand for OSVs in the Indonesia market which is regulated by the cabotage law, PTSB plans to add another four vessels to its fleet.

The prospects of the Indonesian oil and gas sector remain vibrant. Capital expenditure in the sector is expected to rise 32.6 per cent year-on-year to USD 25.6bn in 2014, according to Indonesia’s oil and gas regulatory body, SKK Migas.

Of this, oil and gas companies operating in Indonesia have set aside USD 5.3bn to develop oil and gas fields, a 23.1 per cent increase from last year, while exploration spending will increase by 104.6 per cent to USD 3.84bn.

 “This deal makes good business sense for all parties,” said Francis Wong, group chief executive officer and president of Swiber.

“With its management expertise and wide network in the global OSV markets, we are confident that Vallianz will provide the impetus for PTSB to build and strengthen its market position in Indonesia.

“As a major shareholder of Vallianz, Swiber stands to benefit from Vallianz’s and PTSB’s future growth. At the same time, Swiber can continue to offer its customers a complete and integrated suite of offshore construction and support services through its group of companies.”

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