Nam Cheong secures US$64.5 million shipbuilding contract, its first in over a decade
[SINGAPORE] Nam Cheong has secured a US$64.5 million contract for four offshore support vessels (OSVs), marking its first newbuild win in over 10 years, the offshore marine group said on Tuesday (Feb 24).
The order was placed by an “established United Arab Emirates-based energy maritime logistics company”, as newbuild demand gradually gains momentum, the group said.
The contract involves two 60-metre dive support vessels (DSV) and two 60-metre remote operated landing crafts (ROLC).
All four units will be constructed in-house at the group’s Miri Yard in Sarawak, Malaysia, with deliveries scheduled for the second half of 2027 and early 2028.
The vessels will support the customer’s ongoing exploration and production activities, said Nam Cheong.
Technical specifications
The ROLCs represent a significant technical pivot for the yard, and are the first of their kind “cutting-edge vessels” to be built globally, said the company.
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The vessels will be completely unmanned and operated via satellite connection from a shore station. The design features built-in auto-docking capability for crewless functionality.
Meanwhile, the DSVs are made for complex operations in harsh open-water conditions, including tasks such as diving support, remotely operated vehicle support and underwater maintenance.
Financial impact
The deal arrives as global oil majors signal increased confidence through mega-project investments, and the existing global OSV fleet – averaging 15 to 16 years of age – approaches a critical replacement cycle.
Recent decisions by the Organization of the Petroleum Exporting Countries to hike oil production for the eighth consecutive month through November 2025 have further stabilised demand visibility, as the alliance seeks to regain market share and support economic growth.
“This marks the beginning of the resurgence in demand for our shipbuilding activities after more than a decade,” said chief executive officer Leong Seng Keat.
If the conditions of the contracts are met, they are expected to contribute positively to the group’s earnings for the financial year ending 2026 to 2028.
Shares of Nam Cheong ended at S$1.33 on Monday, up S$0.03 or 2.3 per cent.
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