DW expanding in SE Asia

Drydocks World (DW) – SE Asia expects to start operations at a fifth yard in the Southeast Asia region in 18 months’ time. Dredging work will begin on the 174-hectare (430-acre) site in Batam, Indonesia from late September. The new yard, PT Maritime Centre, will be operated by a 80/20 joint venture between Drydocks and offshore engineering company and land rig builder, Fabtech, according to DW – SE Asia’s CEO Denis Welch.

The key activities at the new yard will be decided after its layout is finalised in late August. However, DW – SE Asia expects the addition of a fifth yard to provide more flexibility for the company to move up the value chain for shipbuilding, according to Welch.

Most shipyards in the region are building the decks for floating production storage offloading vessels (FPSOs), while the components including the turret mooring systems are supplied from third party contractors, Welch said. While the company has no firm plans yet to build these modules, Welch believes DW – SE Asia will have the capacity and capability to do so in the future with the five yards in operations.

DW – SE Asia was formed in March to manage the shipyards Dubai-based DW acquired in Asia, primarily in Singapore and Batam and now operates four yards it acquired after entering into deals to buy Pan-United Marine and Labroy Marine last year.

The Singapore yard previously operated under Pan-United Marine now comes under Drydocks World Singapore and will focus on shipbuilding and ship repair business including FPSO conversions.

Rig building will take place at Drydocks World – Graha’s 49-hectare (121-acre) facilities, or previously Labroy Marine’s shipyard in Batam, Indonesia. DW – SE Asia is looking at expanding the Graha yard to accommodate up to eight jackups in the short term and possibly 12 jackups in the long term.

Two other yards in Batam, Drydocks – Nanindah and Drydocks – Pertama will focus on delivering newbuild offshore construction and offshore support vessels. In addition to the yards in Singapore and Indonesia, DW is in talks to acquire more yard space in China, India and South America, according to Welch. The company is also in advanced talks to buy a 15.5 hectare (38-acre) yard in Jiangsu province of China.

Drydocks SE Asia order book now stands at $1.5 billion including options until 2010, including four jackups under construction at Drydocks World – Graha and two large multi-purpose construction vessels at Drydocks – Pertama. The company is now in talks with Southeast Asian clients for newbuild jackup orders and seeking to secure a second FPSO conversion contract from Nortechs FPSO.