Nam Cheong lands $25.4m OSVs, accelerates charter ambitions

Fleet coverage rises to 69% in the Southeast Asia charter shift.

Nam Cheong secures up to $25.4m (RM102.5m) offshore support vessel (OSV) charter contracts, lifting long-term fleet coverage to 69% as Southeast Asian offshore oil and gas activity underpins demand.

In a press release, the group said it won contracts covering two OSVs, comprising one anchor handling tug supply vessel (AHTS) and one maintenance work vessel, for firm charter periods of up to two years starting in 2026, with options to extend by up to one additional year.

The AHTS vessel has been chartered to Offshore Oil Engineering Co., Ltd., a subsidiary of CNOOC, and began operations in the first quarter of 2026.

The maintenance work vessel is chartered to a regional independent oil producer and is scheduled to start operations in early second quarter 2026.

Both vessels support offshore oil and gas activities in Southeast Asia, the press release added.

Following the contracts, 25 of Nam Cheong’s 36-vessel fleet is under long-term charter, which supports higher utilisation in 2026 and strengthens recurring income visibility.

Leong Seng Keat, chief executive officer of Nam Cheong, said the fleet averages nine years in age—below the market average—and is close to its 70% long-term charter coverage target, balancing earnings stability with spot market exposure.

Offshore activity in Malaysia remains supported by sustained production targets from Petronas, whilst tight OSV supply in Southeast Asia continues to support charter rates due to ageing fleets and limited newbuild activity.

(US$1 = RM4.03)