Pacific Radiance, affiliate seek listings in bet on offshore energy boom | Reuters

It allowed exemptions three years later to

vessels in the oil and gas sector due to a shortage of such

vessels.

Offshore exploration and spending in Indonesia is expected

to more than double in the next three years to $6.3 billion,

outpacing the 60 percent increase globally, according to energy

consultancy Douglas-Westwood.

Pacific Radiance, which unveiled the IPO plans on Wednesday,

itself would become the first offshore support vessel operator

to get listed in Singapore since 2010. Offshore marine services

company POSH Semco, controlled by Malaysia’s richest man Robert

Kuok, is also planning a listing in the city-state, sources said

previously.

(Reporting by Rujun Shen; Editing by Ryan Woo)

Singapore-listed ASL Marine Holdings Ltd also said

recently that it plans to list its Indonesia affiliate PT

Capital Nusantara Indonesia in Jakarta.

More than half of Pacific Radiance’s fleet of 133 vessels

are owned and operated by its affiliates in markets with

cabotage rules, such as Indonesia. It will join a

growing number of listed offshore oilfield service providers in

Indonesia, including PT Wintermar Offshore Marine Tbk,

whose share price has gone up over 34 percent so far this year.

By Rujun Shen

| SINGAPORE

SINGAPORE Nov 8 Singapore Offshore oilfield

services provider Pacific Radiance Ltd and its Indonesian

affiliate are looking to list their shares to benefit from

rising investor interest in vessel operators expanding in the

fast-growing offshore energy sector.

Exemptions for speciality ships commonly used in offshore

oil and gas fields, including AHTS vessels (anchor handling tug

supply vessels), PSVs (platform support vessels), and DSVs

(diving support vessels), expired at the end of last year.

Exemptions for other types of vessels are to be phased out in

the next two years.

Pacific Radiance said it expects Logindo to be listed by the

end of the year but did not disclose the size of the offering.

Sources with knowledge of the plan have said the size of the IPO

would be around $40-60 million, declining to be identified

because the details of the proposal are confidential.

.

The proposed Logindo IPO follows in the footsteps of PT

Pelayaran Nasional Bina Buana Raya Tbk (BBR), part of

Singapore-listed Marco Polo Marine Ltd. In Indonesia, laws requiring

offshore vessels to be Indonesian-owned have limited supply and

driven up the cost of chartering such vessels.

The listing will give Logindo a chance to raise funds to

expand rapidly as competitors race to build up capacity in

Indonesia.

“Indonesia is a big opportunity for companies that are able

to set up operations with local partners and have the capability

to raise the funds to invest in the fleet,” Yoke Min Pang,

executive chairman of Pacific Radiance, told reporters on

Thursday.

Logindo, in which Pacific Radiance owns a 49 percent stake,

has a fleet of 58 offshore support vessels. BBR made its

debut on the Indonesia Stock Exchange in January.

The planned initial public offering of affiliate PT Logindo

would make Pacific Radiance the second Singapore-based offshore

support vessel owner to list its Indonesian arm in Jakarta this

year.

Chartering rates are at least 20 percent higher in Indonesia

than other markets, Pang said.

In 2008, the Indonesian government introduced cabotage laws

that required vessels to be owned by Indonesian companies and

fly Indonesian flags

Leave a Reply