business

Eversendai eyes US$200m job

ABU DHABI: Eversendai Corp Bhd's wholly-owned unit, Eversendai Offshore RMC FZE, aiming to secure a contract worth about US$200 million to build up to two vessels for a major European oil and gas (O&G) firm.

It is believed that Eversendai Offshore is also working towards securing contracts to build vessels for O&G companies in the Middle East.

One of the parties that Eversendai Offshore is in talks with in the Middle East is Saudi Aramco, Saudi Arabia’s national petroleum and natural gas company.

Last November, Eversendai Offshore secured a major offshore fabrication project in United Arab Emirates (UAE) from Saudi Aramco.

Eversendai Offshore is the first Malaysian company to have won the project from Saudi Aramco, which is expected to invest more than US$300 billion over the next 10 years.

The company was recently certified with Saudi Aramco local manufacturer status (9com) certification, which pre-qualifies its Ras Al Khaimah fabrication yard in RAK Maritime City, to execute Saudi Aramco projects.

Eversendai Offshore chief executive officer Narish Nathan confirmed that the company is talking to O&G players in Europe and the Middle East.

"We are discussing how many vessels they require. The contract value will depend on the number of vessels they want, and specification. We have space at our Ras Al Khaimah fabrication yard to build more vessels," Narish said.

Narish was speaking to NST Business after launching the sea trials for Aryan, the company's first fully constructed self-propelled lift boat, at the Ras Al Khaimah fabrication yard, recently.

The sea trial for Aryan, built for Singapore-based O&G firm Vahana Offshore (S) Pte Ltd at a cost of US$110 million, began March 21.

Aryan will be delivered to Vahana Offshore at the end of this month.

Eversendai Offshore is building a second vessel, Arjun, for Vahana Offshore, which the latter will receive in 2019.

The construction of Arjun is about 30 percent completed and work is temporarily on hold. Eversendai is waiting for the bank loan to finance the construction of Arjun, pending a charter contract for Aryan. This is based on the conditional financing agreement between Eversendai and its bank.

Vahana Offshore is an O&G company founded by Tan Sri AK Nathan, who is also Eversendai executive chairman and group managing director.

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