Swiber, Petrovietnam Establish Joint Stock Company

Swiber is fortifying its presence in Vietnam by joining forces with a domestic O&G service provider to tap the market for offshore installation construction business.

The Group announced today that it has, through its subsidiary, Swiber Offshore Construction Pte. Ltd, signed a Memorandum of Understanding with Petrovietnam Construction Joint Stock Corporation ("PVC"), a premier offshore service provider in the oil and gas industry specializing in onshore & offshore construction services, to set up a Joint Stock Company (JSC) in Vietnam. PVC is a subsidiary of the national oil and gas corporation, Vietnam Oil & Gas Group (PetroVietnam) and specializes in providing engineering and construction activities for the oil and gas sector, designing and supplying steel structures, pipelines and process pipings, and petroleum storage products for onshore and offshore oil and gas projects.

The JSC will own and operate a pipelay/derrick barge (DLB) for offshore installation construction activities primarily in Vietnam, using the underlying assets, related service and associated equipment of the two companies. The DLB with a maximum lifting capacity of 4,180 tons will be one of the Swiber fortifies Vietnam presence with JSC largest heavy lift cranes in the Asia Pacific region. Prior to the completion of the DLB, the JSC will charter Swiber vessels on an exclusive basis to tackle Vietnam projects.

According to Swiber's Executive Chairman and Group CEO, Raymond Goh, "The strategic proposition of this tie-up is to align our respective capabilities to promote the most efficient operational and commercial solutions and associated benefits from a long term contracting relationship, providing economic value of scope and scale which is capable of delivering reasonable profits for both parties.

"It is also testament to Swiber's commitment to its expansion plans in the flourishing Vietnamese offshore market," Goh added.

Under the terms of the MOU, the JSC shall be the exclusive entity to perform offshore construction services in Vietnam. The DLB can also be chartered for projects outside Vietnam by either party. As a further demonstration of their commitment to the partnership, Swiber will hire, train and develop PVC’s personnel to handle offshore construction works for the duration of the agreement.

Pham Xuan Dieu, Chairman of the Board from Petrovietnam Construction Joint Stock Corporation, added, "We are very happy to embark on this alliance with Swiber. We view this as a mutually beneficial long-term relationship where both parties will work hard to provide the most efficient and best solutions to our customers.”