Deep Sea Supply moves into Malaysian offshore service market

Oslo-listed Deep Sea Supply plc is moving to get access to the growing offshore supply market in Malaysia, which is protected by strong cabotage regulations. Today it announced it has entered into an exclusive partnership agreement with two Malaysian partners, Efogen Sdn Bhd and a Malaysian government owned investment fund. It says that through Efogen Sdn Bhd it has secured a reputable industrial partner with established customer relations in the local Malaysian market.

The new partnership, indirectly controlled 25 percent by Deep Sea Supply, has purchased the AHTS vessel “Sea Weasel” from Deep Sea Supply at market terms. The vessel is currently on a charter to Petronas and will be put under the Malaysian flag and managed by Deep Sea Supply.

The ship is a 63.4 m Seatech P-729 design AHTS delivered from ABG Shipyard, India, in 2009.

Deep Sea Supply says that together with its new partners, it has been able to attract favorable local financing, minimizing the equity injected in the new partnership. It says it is confident that this structure is a solid fundament for building up the preferred offshore supply vessel operator in the interesting Malaysian market.

Finn Amund Nordby, CEO of Deep Sea Supply, elaborates: “The new partnership will enable Deep Sea Supply to expand into the exciting Malaysian offshore supply market. A local presence is a prerequisite in order to succeed, and we are confident that this agreement will lead to attractive opportunities for Deep Sea Supply. The partnership further demonstrates Deep Sea Supply’s strategy to take a more active approach in securing attractive positions in prioritized growth markets.”

January 26, 2011