Singapore Exchange Mainboard-listed companies, Marco Polo Marine Ltd and Nam Cheong Limited have formed a joint venture company following the sale of Marco Polo Marine Group’s 50% stake in Marco Polo Offshore (IV) Pte Ltd to Nam Cheong Group on 19 August 2014.
The JV Co recently purchased a newly built Accommodation Work Vessel (the “AWV”) constructed by the Nam Cheong Group. Following the acquisition of the AWV, the JV Co has announced that it has secured a long-term firmed five-year bare-boat contract with an estimated value in excess of US$27 million. The Contract value does not include the two-year plus subsequent two-year further extension options subject to mutual agreement between the JV Co and the charterer, which if fully exercised, would result in a contract value of almost US$50 million.
The AWV will be utilised to support a regional growing offshore and marine services provider and is expected to be deployed in the regional waters by early September 2014 for the stated initial period of five years firmed. Generally used as floating platforms for the operations and maintenance and supply functions by subsea service providers, the AWV is a sophisticated state-of-the art American Bureau of Shipping (ABS) Classed Offshore Support Vessel equipped with heavy lifting cranes, Dynamic Positioning Grade 2, Fire Fighting Notation 1 and complemented by 200 beds.
Lee Yun Feng, Chief Executive Officer of Marco Polo Marine, commented, “We are pleased to have formed this JV with Nam Cheong. The advantages of this venture are indeed multi-fold but principally, we are able to combine our respective group’s strengths in ship-chartering and ship-building to expand our businesses. Tapping on our chartering network, we are exploring the possibilities of the joint ownership of more vessels and indeed we look forward to provide more comprehensive service offerings to our chartering clients.”
Continuing on with the spirit of collaboration, Leong Seng Keat, Chief Executive Officer of Nam Cheong, remarked: “Having a strong partner like Marco Polo enables the JV to tap on the key competencies of both Marco Polo and Nam Cheong. We believe that having Marco Polo’s experience and wide network of business relationships in the vibrant chartering space while leveraging on Nam Cheong’s strengths in constructing high quality vessels put this mutually beneficial partnership in a unique position. We are excited by the prospects and look forward to having this robust relationship serve as a good platform for future strategic collaborations for the benefit of our stakeholders.”