Singapore’s Otto Marine Limited will together with an unnamed port operator explore the potential development of a fabrication and marine facility in Batam, Indonesia.
According to Otto, a company both building and chartering offshore vessels, the proposed development is strategically located in close proximity to Singapore and to the south east Asia’s oil and gas fields, “to tap on the robust Indonesian oil and gas industry”.
Otto Shipyard currently operates a 65 hectare shipyard in Batam, through its sister company PT. Batamec. The proposed development will use a fraction of the yard space and is not expected to cause any disruption on PT. Batamec’s existing shipyard facilities.
Otto, which has signed a memorandum of understanding for the project with what it described as “one of the world’s largest integrated port operator providing marine and logistics services,” said that the proposed development is expected to be fully operational by July 2017.
Michael See, Otto Marine CEO said the deal with “a well-established company” was particularly uplifting, given the continued dreary conditions in the oil and gas industry.
“The proposed development will provide new avenues which will improve our overall competitiveness and give us an edge in the region,” See said.
“We have strong capabilities in fabrication, ship repair and conversion and we have a healthy client base that has utilised our sophisticated offshore fabrication services over many years. Furthermore, being in Batam helps us obtain cabotage related business. For this upcoming fabrication and marine base, we can provide the above mentioned expertise along with infrastructural and labour support, and the local know-how.”
While remaining mum on the identity of the partner company, see said that “our partner brings to the table its world class experience and expertise in port management and a robust following of loyal and repeat customers as well”.