Vallianz Holdings Limited (Vallianz), an integrated offshore marine solutions services provider in the offshore oil and gas industry, has boosted its order book to US$334.0 million through its New Subsidiary in the Kingdom of Saudi Arabia with an ongoing contract-with-additional option to charter AHTS vessels to a leading oil company in the Middle East. The New Subsidiary is jointly owned by Rawabi, a leading Saudi Arabian oil and gas service company.
Commented Mr. Darren Yeo, Executive Director and Chief Executive Officer of Vallianz: "We are pleased to establish our presence in the Middle East through this partnership with Rawabi. It has always been our growth strategy to pursue long-term charters; focusing on the best offshore marine vessels; diversifying our customer base and to expand our asset base. With this partnership, Vallianz’s vessel fleet is strengthened to a fleet of 22 offshore support vessels, our orderbook is propelled over 27 times to US$334.0 million, and our customer base is now extended beyond Asia Pacific to the Middle East.
Added Mr. Darren Yeo: "Rawabi is one of the fastest-growing companies in the Middle East and a leading conglomerate in the Kingdom of Saudi Arabia. Rawabi has been a service provider to national oil companies such as Saudi Aramco for the last three decades. With the New Subsidiary, Vallianz is well-positioned to seize the abounding opportunities that the offshore oil and gas industry offers in the Middle East."
The Kingdom of Saudi Arabia is a founding member of the Organization of Petroleum Exporting Countries (OPEC) and plays an influential role as it is also OPEC’s largest producer. According to OPEC, Saudi Arabia’s oil and gas sector accounts for roughly 50 percent of the Kingdom’s gross domestic product, and 90 percent of export earnings. Saudi Arabia also possesses 18 percent of the world’s proven petroleum reserves. Overall in the Middle East, analysts view the higher spending forecasts for Saudi Aramco, the world’s biggest oil exporter, to be a key driver of growth in E&P budget, which is expected to rise approximately 11 percent to 29.8 billion in 2013.
With continued production work in the Middle East, offshore support vessels continue to be in demand. However, the growth in newbuilds for these vessels remains flat, leading to rising charter rates.
Concluded Mr. Darren Yeo: "Growing in tandem with the huge opportunities present in the Kingdom of Saudi Arabia and Gulf Cooperation Council countries, our presence in the Kingdom of Saudi Arabia will position Vallianz to meet the need for rising demand in the region. With a vessel fleet comprising 22 offshore support vessels, Vallianz is in an
advantageous position to seize growth opportunities in a burgeoning offshore exploration and production sector in the Middle East and beyond."