"Such advanced planning helps us to fulfill our charter contracts and maintain healthy fleet utilization rates," said Group CEO Michael See. Photo: CompanyOTTO MARINE has secured a chartering contract worth up to AUD94.8 million that will commence from May 2017 for 5 years. The contract comes with a 5-year extension option.
The vessel under the charter will be a 100-tonne Bollard Pull OSV, for FPSO infield support in the gas field of 40-year life in Australia.
The contract was secured by the Group's wholly-owned subsidiary, GO Offshore, from a renowned international oil and gas exploration and production company.
The contract value for the confirmed period of 5 years is AUD47.4 million and with the Option, the total contract value is AUD94.8 million.
Chartering contract on close heels of shipbuilding contracts
This contract follows the Group's announcement last month that its shipyard had secured 3 shipbuilding contracts worth US$23 million. The contracts include one unit of 6,500 LTDW (Long Tons Deadweight) product oil tanker, which will be ABS-class, measuring 109 meters in length, with cargo oil tank capacity of 8,300 cubic meters.
The other two contracts were for two units of 1,200 GT (Gross Tonnage) ferry. The order for the product oil tanker was placed by a local Indonesian firm, and the orders for the ferries were placed by an Indonesian state-owned enterprise.
The 3 vessels are expected to be delivered by Otto Marine's shipyard in 4QFY2017, as well as contribute positively to the Group's financial performance in FY2016 and FY2017.
These contracts follow the Group's announcement in January that GO Offshore had been appointed by a renowned port operator as its preferred marine & offshore services provider. The Group owns and operates more than 50 offshore support vessels globally. It is also engaged in specialized shipbuilding, repair and conversion of offshore support vessels.
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