Nam Cheong Limited, a leading offshore support vessel provider based in Sarawak, Malaysia, has secured charter contracts worth up to RM102.5m. The contracts involve two offshore support vessels (OSVs) with a firm charter period of up to two years starting in 2026, with an option to extend for an additional year.
The contracts include an Anchor Handling Tug Supply (AHTS) vessel chartered to Offshore Oil Engineering Co., Ltd., a subsidiary of CNOOC, and a maintenance work vessel chartered to a regional independent oil producer. The AHTS vessel commenced operations in the first quarter of 2026, whilst the maintenance work vessel is set to begin in the second quarter of 2026. These vessels will support offshore oil and gas activities in Southeast Asia.
With these new charters, 25 of Nam Cheong’s 36-vessel fleet are now under long-term contracts, increasing the fleet’s long-term charter coverage to 69%. This move enhances the company’s revenue visibility and recurring income base. The company anticipates improved vessel utilisation rates in 2026, driven by the start of more long-term charters.
Chief Executive Officer Leong Seng Keat commented, “These charter contracts underpin our clients’ confidence in the quality of our fleet. Our average vessel age now stands at 9 years, lower than the market average, which provides a long runway.”
Nam Cheong continues to monitor the market closely, focusing on securing contracts that bolster its long-term earnings quality and resilience. The company remains committed to expanding its vessel chartering operations amidst robust offshore activity in Malaysia and tight OSV supply across Southeast Asia.
