Peter Chayson, GM, investor relations, Berlian Laju. NextInsight file photo
SPEAKING WITH NextInsight just four months ago (Sept 09), Berlian Laju Tanker highlighted the Indonesian cabotage rule that will create big opportunities for Indonesian companies such as Berlian.
The key demand will come from Pertamina which currently uses over 70 foreign-flagged vessels out of its fleet of over 100 vessels.
“This will present a big opportunity for us, and we have a good chance of getting contracts from Pertamina,” said Mr Peter Chayson, Berlian’s general manager for investor relations.
Fifty six of the foreign-flagged ships that Pertamina uses would come off charter by end-2010.
"Pertamina is looking for quality service as it is given a huge responsibility by the government to distribute all the much needed oil and gas products across the 17,000 islands in Indonesia on time,” said Mr Chayson.
This morning, Berlian, in an announcement to the Singapore Exchange, said it had clinched a US$40-m contract from Pertamina.
It has become mandatory to use Indonesian-flagged vessels for the shipping of chemicals, oil/gas and other liquids within Indonesian waters.
BERLIAN LAJU TANKER has been awarded a new charter contract with PT Pertamina, the state-owned Indonesian oil and gas company, for the provision of a Very Large Gas Carrier (VLGC) for a period of up to 7 years.
The contract value of the time charter is worth up to approximately USD 90 million and is the first such contract awarded to an Indonesian company.
To service the contract, BLT (which is listed on the Singapore and Jakarta stock exchanges) has agreed to purchase the Commander N, a VLGC with a total capacity of 78,543 CBM built by NKK Corporation, Japan.
With the delivery of the ship, BLT will reflag the ship into the Indonesian registry in line with BLT’s commitment to the Indonesian Shipping Regulation which, among others, implements the cabotage principle in Indonesian waters to develop the domestic shipping industry.
The vessel has also been specifically chosen to comply with Indonesian Regulation which requires that ships which are reflagged into the Indonesian registry should not be more than 20 years old to ensure high quality and standards for such ships.
This is particularly important as many of the ships which are used within Indonesian domestic waters are older than 20 years.
With the reflagging of the Commander N, the Indonesian shipping industry will have taken a major step in supporting the government’s strategic commitment to using more of Indonesia’s gas resources across the large Indonesian archipelago instead of petroleum.
It will also mark a new era for the development of the Indonesian shipping industry as it will be the firstIndonesian-flagged VLGC and by far the largest gas tanker in the Indonesian registry. This vessel will be an important addition to BLT’s total fleet strength of 104 vessels (including newbuildings).
Source: Berlian Laju Tanker press release Jan 19.
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