Logindo acquires new offshore vessels

Jakarta-based shipping firm PT Logindo Samudramakmur (Logindo) has allocated US$150 million to buy new offshore vessels, mostly to be used for offshore oil platforms, during the 2013-2014 fiscal year in a bid to capitalize on the growth of offshore marine services, reports said Friday.

The company plans to operate around six to eight new Anchor Handling Tug Supply (ARTS) vessels until the end of 2014.

?As of today, we have received two new AHTS vessels with Class 2 Dynamic Positioning systems from China and we will be receiving the third one very soon this quarter,? Rudy Kusworo, one of the firm?s board members, said on Thursday, as quoted by The Jakarta Post.

He said that around 70 percent of the investment was from loans it had obtained from some banks in Singapore, while the remaining 30 percent was taken from the firm?s equity.

AHTS are mainly built for anchor handling and towing offshore platforms, barges and production modules or vessels, and in a few cases, they serve as Emergency Rescue and Recovery Vessels (ERRV) too. The vessels are priced between $18 million to $22 million.

However, due to their high cost and maintenance, the number of Indonesian-registered ARTS vessels operating across Indonesian waters is still low.Indonesian National Shipowners Association (INSA) recent data shows that there are 87 domestically owned ARTS vessels in the country as of August 2013.

?This is why we are committed to serving the marine offshore industry the demand for this sector keeps increasing every single year, in line with the growth of our economy. Yet, not many domestic players are willing to tap into the opportunities,? Rudy said.

Logindo?s clients include Total E&P Indonesie, PT Pertamina Hulu Energi, ConocoPhillips, Chevron, CNOOC SES Ltd. and Santos with contracts of around 3 years on average.

In addition, Logindo director Eddy KurniawanLogam said that the firm secured a $60 million offshore marine service contract in January-September 2013, up by around 30 percent compared to the same period last year.

?We are now in the process of extending some contracts that will end in 2014 with some of our long-time customers as well as seeking new contracts with new partners. We are optimistic about securing more contracts in the future,? Eddy said.

Moreover, in a bid to be more accountable and transparent, Logindo aims to go public in the near future. (*)