It allowed exemptions three years later to
vessels in the oil and gas sector due to a shortage of such
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
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
(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 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 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
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
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