Malaysia-based offshore support vessel (OSV) provider Nam Cheong has secured OSV charter contracts worth up to $25 million, as demand for vessels remains firm in Southeast Asia.
The contracts cover one anchor handling tug supply (AHTS) vessel and one maintenance work vessel, each with a firm charter period of up to two years starting in 2026, with options to extend for an additional year.
The AHTS vessel has been chartered to Offshore Oil Engineering and began operations in the first quarter of 2026, while the maintenance work vessel has been chartered to a regional independent oil producer and is expected to start in early second quarter.
Nam Cheong said both vessels will support offshore oil and gas activities across Southeast Asia and are capable of handling a wide range of offshore support functions.
Following the awards, 25 out of the group’s 36 vessels are now under long-term charters, increasing long-term charter coverage to 69% and improving revenue visibility.
The company said it expects vessel utilization to rise in 2026 as more long-term charters commence.
"These charter contracts underpin our clients' confidence in the quality of our fleet. Our average vessel age now stands at nine years, lower than the market average, which provides a long runway. Our fleet is also technologically advanced, allowing us to serve clients across diverse offshore applications and geographies.
“These contract wins bring us close to our target of 70% long-term charter coverage, which provides a good balance between earnings stability and room to capture upsides in the spot market,” said Leong Seng Keat, Chief Executive Officer of Nam Cheong.
The company added offshore activity in Malaysia remains strong, supported by efforts from Petronas to sustain domestic production, while limited new vessel supply across Southeast Asia continues to support charter rates.