JES International Kickstarts Maiden Offshore Project

Mainboard-listed JES International Holdings Limited, a private shipbuilding group based in the PRC, announced that the group has commenced the steel cutting for its first two Platform Support Vessels (PSV) at its shipyard located in Jingjiang City, China.

According to the builder, the UT 755 LN Platform Support Vessel is of a sophisticated and well known design, utilizing a comprehensive package from Rolls Royce which includes design and engineering services, as well as all main equipment. The vessels have a capacity of approximately 3,100 deadweight metric tons and a length of 77 meters, built under DNV classification. JES secured a total of four PSVs in the fourth quarter of 2012 from a customer based in Norway - Vega Offshore Management AS. The first two PSVs are expected to be delivered in 4Q2014 and 1Q2015.

Vega Offshore is an offshore support vessels owner, operator and commercial manager that has taken delivery of eight offshore support vessels from other Chinese yards over the last 18 months. The series of UT 755 LN from JES is part of Vega Offshore’s plans to grow its fleet of vessels. Vega Offshore is already looking into long term employment for the first two units. Their first eight vessels are all operating in Brazil waters on long term contracts with Petrobras.

JES said it is focused on the smooth execution of the UT 755 LN’s construction in building its track record as the UT 755 LN PSV shall form the base of JES’ PSV product range to foray into the offshore oil and gas sector. The group believes more contract wins for UT 755 LN PSV will consequently follow due to the PSV’s functionality and practicability. Based on the group’s understanding, future demand for medium-sized PSVs such as the UT 755 LN is still strong and new order wins are hopeful over the coming months.

“We are very excited to see the commencement of construction for the first UT 755 LN project. It marks a very momentous occasion for JES as it signifies our diversification into the more technically challenging offshore oil and gas sector,” said Jin Xin, Chairman and Chief Executive Officer, JES. “We are confident that the UT 755 LN will be a prided product that will strengthen our presence in this sphere.”

Kenneth Fjeld, Managing Director of Vega Offshore, added, “The offshore support vessel market, particularly for PSVs, is still strong and we see increased demand for high quality vessels such as UT 755 LN in markets including Southeast Asia, West Africa, Gulf of Mexico and South America.”