Alam Maritim unit buys work barge for Rm95mil

KUALA LUMPUR: Alam Maritim Resources Bhd said its jointly-controlled company Alam Radiance (L) Inc has signed a memorandum of agreement with Pacific Crest Pte Ltd to acquire a 402 men/100m accommodation work barge, Crest Station 3, for US$31.55mil (RM94.65mil).

In a filing with Bursa Malaysia, Alam Maritim said that upon delivery, Crest Station 3 was expected to serve a contract with Exxonmobil Exploration and Production Malaysia Inc. The contract with Exxonmobil Exploration was announced last Thursday.

“The acquisition is in line with the fleet expansion plan of the group’s core business in providing marine support services to the offshore oil and gas facilities.

“New investments in this business segment will definitely help to spur growth with the ever-increasing demand for marine support services, locally and internationally, in the upstream sector of the oil and gas industry,” Alam Maritim said.

It added that the deposit and progress payments were currently being funded by internal funds.

“This new vessel is expected to contribute positively to the future earnings and net tangible assets of the company for the financial year ending Dec 31, 2012 and beyond.”