sDaya Materials Bhd (DMB) said its subsidiary, Daya Offshore Construction Sdn Bhd (DOC), has entered into a charter party contract with Allseas UK Ltd for the provision of offshore walk-to-work subsea construction vessel (OSCV) together with a range of offshore services for the United Kingdom North Sea Region.
According to a statement to the exchange yesterday, the contract value is up to RM11.8 million for a contract period of 20 to 30 days which brings the combined orderbook of its OSCV, called Siem Daya 1, to RM451.8 million.
Siem Daya 1 had secured its first contract of RM440 million in August 2013 with Technip Norge AS, Norway.
“We are working hard on continuously bidding for additional contracts for Siem Daya 1 and having these two contracts secured thus far, it is providing us with a promising outlook that we are progressively building the company’s profile within the oil and gas industry not only in Malaysia but globally,” said DMB Group CEO Datuk Mazlin Junid in a statement yesterday.
DMB said the charter value will contribute positively to the company and bodes well as DMB has identified the offshore construction and subsea installation sector as one of the key areas of growth for the group over the next few years.
The company is now expecting delivery of its second OSCV, Siem Daya 2 in December 2013.
DMB said it is venturing into design engineering services business opportunities in Malaysia with a triparty shareholders and joint venture (JV) agreement signed with an Indian and an Indonesian company.
Its 51% subsidiary Daya Petroleum Ventures Sdn Bhd is taking up 40% share of the JV company while the other two parties namely PT Singgar Mulia and Globalstroy Engineering India Pte Ltd, will each have 30% share in the yet to be named JV company.
“The completion of the proposed JV will mark another milestone for the DMB Group in providing full-fledged exploration and production support services for the oil and gas industry,” said DMB in rationalising the venture.
DMB’s investment for the JV will be RM40,000. The JV company will be registered and operate in Kuala Lumpur.