Malaysian offshore marine group Nam Cheong has signed an MOU to enter into a lease agreement with Labuan Corporation, an agency under the Ministry of Federal Territories, to redevelop the existing facilities on the land in Kiansam, Labuan.
Under the deal, Nam Cheong Dockyard intends to redevelop the existing facilities on the land into modern integrated marine engineering and construction facilities to buttress the growth of oil and gas industries in Labuan, Sabah, Sarawak and Brunei.
The new facilities will include warehouse for supply base, yard utilities, waterfront bulk head facilities for ship repairing, ship berthing and fabrication workshops, as well as a training centre for workers.
A definitive agreement is expected to be signed by year-end and the operation is expected to commence in 2021.
Nam Choeng expects the collaboration with Labuan Corporation to set a firm foundation to boost its potential in expanding its revenue streams to include ship repair, offshore engineering procurement and construction, supply base and logistics for offshore marine support service, in addition to its existing shipbuilding and chartering businesses.
“We appreciate the ministry’s trust in our capabilities in providing integrated offshore marine solutions. In line with our strategy to strengthen our business via exploring EPCIC and related segments, this new project lays a cornerstone for future opportunities. We seek to continue to leverage on our established presence in Malaysia’s offshore marine sector to embrace a more diversified business model while remaining committed to deliver quality service to our clients,” said Leong Seng Keat, CEO of Nam Cheong.
Nam Cheong is Malaysia’s largest OSV builder and the company is expanding its vessel chartering operations. It currently has a chartering fleet of over 30 vessels.