Nam Cheong Clinches US$64.5 Million Shipbuilding Contracts for Four OSVs

● First newbuild contract in over a decade marks the beginning of the resurgence in demand for Nam Cheong’s shipbuilding amid strengthening offshore oil and gas demand.
● The Group is expected to deliver two 60-metre Dive Support Vessels and two 60-metre Remote Operated Landing Crafts in 2H2027 and early 2028.

Kuala Lumpur, TechnoBusiness MY ● Nam Cheong Limited (Nam Cheong or the Group),
one of Southeast Asia’s leading Offshore Support Vessel (OSV) providers based in
Sarawak, Malaysia, is pleased to announce that the Group has secured shipbuilding
contracts worth US$64.5 million for four (4) units of offshore support vessels (OSV) from
an established UAE based global energy maritime logistics company. This marks the Group’s
first shipbuilding contract-win in over a decade, as newbuild demand recovery gradually
gains momentum.

The contracts comprised two 60-metre Dive Support Vessels (DSV) and two 60-metre Remote Operated Landing Crafts (ROLC), expected to be delivered in 2H2027 and early 2028. The Dive Support Vessel is a highly sophisticated offshore asset specifically designed to carry out a wide range of complex subsea operations under harsh open-water conditions, including tasks such as Diving Support, Remotely Operated Vehicle (ROV) support, underwater inspections, and maintenance.

The ROLC, which is first-of-its-kind to be built in the world, is a cutting-edge vessel based on the remote-control system developed by SeaOwl Group, and will be totally unmanned and remotely operated via satellite connection from shore station. The vessel, equipped with built-in auto docking capability, will be used for logistical operations that require rapid deployability, versatility and crewless functionality.

All four OSVs will be fully constructed in-house at the Group’s Miri Yard in Sarawak, Malaysia.
These contract-wins reflect the Group’s strengthened shipbuilding capabilities developed over 60 years, while also showcasing the customer’s strong trust and confidence in the Group’s proven track record built over decades. Subject to the fulfilment of the conditions of the contracts, the contracts are expected to contribute positively to the Group’s earnings for the financial year ending 2026 to 2028.

The Organisation of Petroleum Exporting Countries (OPEC+) recently announced another
oil output hike for November 2025, representing the eighth consecutive month of production hikes as the alliance seeks to regain market share and support their economic growth. These four newbuild vessels, upon delivery, will be added into the customer’s fleet expansion and renewal programme, supporting its ongoing exploration and production activities.

Looking ahead, global oil majors appear optimistic, evidenced by their willingness to invest
in new mega projects and make huge acquisitions. This indicates their confidence that
long-term crude oil prices will remain sufficiently elevated to justify substantial capital
commitments in new fields, thereby enhancing demand visibility for newbuild OSVs, as
the existing global fleet, averaging 15-16 years of age, approaches replacement cycle.

Commenting on the new contract-wins, Leong Seng Keat, Chief Executive Officer of Nam Cheong said, “We are thrilled to have an established UAE-based global energy maritime logistics company, as our new customer, for constructing four highly sophisticated OSVs. This marks the beginning of the resurgence in demand for our shipbuilding activities after more than a decade. We are deeply grateful for the customer’s trust and confidence in us and equally proud that our own efforts and continuous upskilling have brought us to this milestone.”

He continued, “I am confident that our decades of proven track record in shipbuilding, strengthened technical know-how, and commitment to meeting customers’ requirements will enable us to ride on this positive newbuild momentum and deliver long-term value to our shareholders.”●

MOHD. PATEH/TechnoBusiness MY