Vallianz Holdings Ltd., a provider of offshore support vessels and integrated marine solutions to the oil and gas industry, is proposing to acquire a 49% stake in PT Swiber Berjaya (PTSB) for $17.5 million to gain entry into Indonesia’s offshore support vessel (OSV) market.
Vallianza will be acquiring the 49% equity interest in PTSB from Swiber Holdings Ltd. The remaining 51% in PTSB will continue to be held by PTSB’s Indonesian shareholder. Upon completion of the acquisition, Swiber will continue to benefit from PTSB through its direct shareholding of 23.36% in Vallianz.
PTSB owns and charters OSVs to support the oil and gas exploration and production activities of oil majors and national oil companies in the Indonesian waters. It operates a diversified fleet of 18 OSVs comprising mainly anchor handling tug (AHT) vessels, anchor handling tug supply (AHTS) vessels, flat top barges (FT barges), and accommodation work barges (AWBs). To address the demand for OSVs in the Indonesia market which is regulated by the cabotage law, PTSB plans to add another four vessels to its fleet.
The prospects of the Indonesian oil and gas sector remain vibrant. Capital expenditure in the sector is expected to rise 32.6% year-on-year to $25.6 billion in 2014, according to Indonesia’s oil and gas regulatory body, SKK Migas. Of this, oil and gas companies operating in Indonesia have set aside $5.3 billion to develop oil and gas fields, a 23.1% increase from last year, while exploration spending will increase by 104.6% to $3.84 billion.