Vallianz gets US$458m charter extension but with charter rate cut

OFFSHORE vessel owner Vallianz Holdings has extended the charter duration for several of its boats in the Middle East in new contracts worth up to US$458 million, it said in a Singapore Exchange filing on Monday.

The 19 vessels are currently deployed to an existing customer in the region, a national oil company, it said.

However, charter rates for the vessels in the new contracts have been cut by 10 per cent on average, the company said.

Vallianz chief executive Ling Yong Wah said that it had proactively "engaged our NOC customer to review the group's existing vessel charters ... it is paramount that the group exercises flexibility to align our services to prevailing market conditions".

The company added that the contract extension has enabled the group to lengthen the charter duration for half of its own fleet to 2020, including options.

The latest deals boost its order book to nearly US$1 billion.