Deep Sea Supply enters strategic cooperation agreement in MalaysiaCompany News // January 28, 2011
Deep Sea Supply in Norway has entered into an exclusive partnership agreement with two Malaysian partners, Efogen Sdn Bhd and a Malaysian government-owned investment fund.
The rationale behind the partnership agreement is to gain access to the growing offshore supply market in Malaysia, which is protected by cabotage regulations.
"Through Efogen Sdn Bhd we have secured a reputable industrial partner with established customer relations in the local Malaysian market," said Deep Sea Supply.
The new partnership, indirectly controlled 25 per cent by the company, has acquired the AHTS vessel Sea Weasel from Deep Sea Supply at market terms. The
vessel is currently on a charter to Petronas and will fly the Malaysian flag and be managed by Deep Sea Supply.
"Together with our new partners, the company has been able to attract favourable
local financing, minimizing the equity injected in the new partnership," said Deep Sea Supply. "The company is confident that this structure is a solid fundament for building up the preferred offshore supply vessel operator in the interesting Malaysian market."
Finn Amund Nordby, CEO of Deep Sea Supply, said: "The new partnership will enable Deep Sea Supply to expand into the exciting Malaysian offshore supply market.
"A local presence is a prerequisite in order to succeed, and we are confident that this agreement will lead to attractive opportunities for Deep Sea Supply. The partnership further demonstrates Deep Sea Supply's strategy of taking a more active approach in securing attractive positions in prioritized growth markets."