Sarawak, Malaysia-based offshore support vessel builder Nam Cheong Limited has sealed a sales deal with an Indonesian customer to divest an 11-year-old 3,000-dwt platform support vessel (PSV) for US$19.8m, with delivery expected to be concluded in the first quarter of 2026.
The Southeast Asia’s offshore support vessel provider said the vessel is sold to an Indonesian customer for immediate deployment to support ongoing operations, aligning with the pickup in offshore activities in Indonesia, where investments in upstream oil and gas reached a decade-high in 1H2025.
It noted the transaction forms part of its fleet reprofiling initiatives, and is expected to contribute positively to the group’s earnings for the financial year ending 2026.
Net proceeds will be allocated for debt repayment and working capital needs, according to a company’s filing on SGX-ST on January 26.
The company didn’t disclose more details about the PSV vessel.
Following the sale, Nam Cheong will manage a total of 36 offshore support vessels (OSVs) with an average vessel age of 9 years.
Globally, the OSV market reached $4.73bn in 2024, and according to Nam Cheong is projected to grow at a 7.5% compound annual growth rate between 2025 to 2034, reaching $9.75bn by 2034.
Leong Seng Keat, chief executive officer of Nam Cheong, said: “I believe that we are at a sweet spot supported by our complementary OSV chartering and shipbuilding businesses. We have the optionality to generate recurring income through the monetisation of our older vessels via ship sales or continue to generate revenue with our chartering services. At the same time, with the resumption of our shipbuilding business, we have the capability of external vessel sales or expanding our ship chartering fleet. We believe this dual-pronged strategy will not only advance growth momentum with stronger cash flows but also unlock shareholder value over time.”
Malaysia’s Nam Cheong is a global offshore marine group specialising in the building and chartering of OSVs.
The group has delivered over 150 vessels since 2007, which include anchor handling towing supply (AHTS) vessels, platform supply vessels (PSVs), accommodation work boats and accommodation work barges.
Nam Cheong is also expanding its vessel chartering operations, with the group operating a chartering fleet of 36 vessels.
