Nam Cheong secures US$64.5 mln OSV contract, first newbuild win in over a decade

KUCHING (Feb 24): Nam Cheong Limited has secured shipbuilding contracts worth US$64.5 million for four offshore support vessels (OSVs) from a UAE-based global energy maritime logistics company.

The group in a statement on Tuesday said the latest win marks its first shipbuilding contract-win in over a decade as newbuild demand recovery gradually gains momentum.

The contracts cover two 60-metre Dive Support Vessels (DSV) and two 60-metre Remote Operated Landing Crafts (ROLC). Delivery is scheduled for the second half of 2027 and early 2028.

The DSV is designed to undertake complex subsea operations in harsh offshore conditions, including diving support, remotely operated vehicle (ROV) support, underwater inspections and maintenance works.

Meanwhile, the ROLC, described as the first of its kind globally, is based on a remote-control system developed by SeaOwl Group.

The vessel will operate fully unmanned and be controlled remotely via satellite connection from an onshore station. Equipped with an auto-docking system, it is intended for logistical operations that require rapid deployability, versatility and crewless functionality.

All four vessels will be built in-house at the group’s Miri yard in Sarawak.

“These contract-wins reflect the group’s strengthened shipbuilding capabilities developed over 60 years, while also showcasing the customer’s strong trust and confidence in the group’s proven track record built over decades,” it said.

Chief executive officer Leong Seng Keat said the award signals a revival in demand for the group’s shipbuilding activities after more than a decade.

“We are deeply grateful for the customer’s trust and confidence in us and equally proud that our own efforts and continuous upskilling have brought us to this milestone.

“I am confident that our decades of proven track record in shipbuilding, strengthened technical know-how, and commitment to meeting customers’ requirements will enable us to ride on this positive newbuild momentum and deliver long-term value to our shareholders,” he said.

Subject to the fulfilment of the conditions of the contracts, the contracts are expected to contribute positively to the group’s earnings for the financial year ending 2026 to 2028.

The development comes amid improving industry fundamentals, Nam Cheong said, as OPCE+ recently announced another oil output increase for November 2025, marking the eighth consecutive month of production hikes as the alliance seeks to regain market share and support economic growth.

The four vessels will form part of the customer’s fleet expansion and renewal programme, supporting ongoing exploration and production activities.

Looking ahead, global oil majors appear optimistic, evidenced by their willingness to invest in new mega projects and make huge acquisitions.

“This indicates their confidence that long-term crude oil prices will remain sufficiently elevated to justify substantial capital commitments in new fields, thereby enhancing demand visibility for newbuild OSVs, as the existing global fleet, averaging 15-16 years of age, approaches replacement cycle,” it added.