Dubai-based Gulf Navigation Holding PJSC (GulfNav) is in discussions to acquire a majority stake in Singapore-based Atlantic Navigation Holdings, a provider of offshore marine logistic services.
Gulf Navigation said on Sunday that it was also in discussions with major oil companies in the Gulf region to provide key project solution and offshore services.
According to GulfNav, the potential acquisition will propel the business forward and create added opportunities that both companies can deliver.
Through this investment in Atlantic, GulfNav will have an interest in 32 vessels, including seven newly built.
Khamis Juma Buamim, CEO of GulfNav, said: “This investment marks a major milestone in Gulf Navigation’s strategy to grow our offering to our customers in the regional offshore oil and gas sector. At the same time, it gives GulfNav a significant position in the Gulf Cooperation Council regional OSV oil and gas market.”
Wong Siew Cheong, executive chairman and CEO of Atlantic, said: “We look forward to joining forces with Gulf Navigation and working together and drive our shared ambitious growth strategy in the offshore oil and gas sector.
“GulfNav will provide Atlantic with, on one hand, new strategic and financial resources to implement our growth plans to enable us to widen our services to our clients and, on the other, broader opportunities for our talents.”
Atlantic provides marine logistic services, ship repair, fabrication, and other marine services primarily to customers in the Middle East and India.
The company operates a fleet of 25 vessels which comprises a variety of AHT, AHTS, jack-up accommodation barges, offshore cargo barges, towing tugs, offshore supply vessels, and lift boats. Of the 25, 17 are wholly owned by Atlantic, two are jointly owned, and six are cross chartered or managed.
To add to the fleet, Atlantic ordered seven new OSVs which are built to fulfill part of contracts awarded by a Middle East national oil company (NOC). The deals are for the charter of a total of ten OSVs comprising of AHTSs and utility vessels. The duration of charter is five years plus a two-year option with a potential contract value of $236 million.
Atlantic also owns a 50% share in a consortium which will undertake a $45 million decommissioning project with a Middle Eastern NOC. The project is the first of its kind and entails demolition and removal of offshore and onshore structures in an abandoned oilfield in Abu Dhabi. Under the terms of the consortium agreement, Atlantic has the first right of refusal in providing the entire marine spread required for the project.