Bina Buana seeks to reduce vessel acquisition amid oil downturn

By Thomas Sembiring

IDX-listed PT Pelayaran Nasional Bina Buana Raya Tbk (Bina Buana), which is engaged in the provisioning of offshore services and marine logistics, is currently in negotiation process to reduce the number of offshore support vessels it has ordered amid the lingering oil industry downturn.

President Director of Bina Buana, Peter said recently that the company initially placed orders for six anchor handling tug supply (AHTS) vessels worth US$130 million from two affiliated companies Singapore-based Marcopolo Shipyard Pte Ltd and Malaysia-based Nam Cheong International Ltd, to be delivered within two years.

But given the current oil and gas industry downturn, the company is seeking to renegotiate the acquisition deal including the possibility of reducing the number of vessels to be acquired by at least two units, Peter said, adding that the cancelation would allow Bina Buana to save about $46 million. No further details were provided.

Editing by Reiner Simanjuntak