Kuala Lumpur: The president and ceo of Malaysian energy giant Petronas has poured cold water on rates for the local offshore support vessel (OSV) sector.
Shamsul Azhar Abbas said domestic OSV rates were falling and would continue to do so amid a rampant build up in capacity of OSVs and rigs in Malaysia.
“There is an oversupply of OSVs in Peninsular Malaysia for Petronas’ demand. So, these companies have to expand regionally,” he told a press conference.
Shamsul also confirmed that Petronas would make a final invesment decision (FID) this month on the Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor. The refinery in Johor could have big implications for regional tanker trades if it gets the go ahead. [05/03/14]'