China's JES cuts steel for first PSV pair

DECEMBER 12, 2013 — Underscoring the fact that Chinese shipyards that originally targeted the largest ships are now looking much lower down the tonnage scale, Singapore-listed JES International Holdings Limited has commenced steel cutting for the first two platform support vessels to be built at its Jingjiang City, China, shipyard.

JES has an estimated annual shipbuilding capacity of two million dwt and its 804,000 sq.m Jingjiang City shipyard is equipped with facilities encompassing every stage of the shipbuilding process and is able to produce vessels of up to 500,000 dwt, though its largest typical bulker deliveries have been in the 80,000 dwt range.

The 3,100 dwt PSVs are the first of four ordered by Vega Offshore Management AS of Norway and are being built to Rolls-Royce UT 755 LN design, utilizing a comprehensive package from Rolls-Royce that includes design and engineering services, as well as all main equipment.

The vessels have a capacity of approximately 3,100 deadweight tonnes and a length of 77 meters and are being built under DNV classification.

JES says it is focused on the smooth execution of construction of the UT 755 LNs to build its track record. It says the UT 755 LN PSV will be the base of its product range to get into the offshore oil and gas sector. It believes future demand for medium-sized PSVs such as the UT 755 LN is still strong and new order wins are hoped for 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. We are confident that the UT 755 LN will be a prided product that will strengthen our presence in this sphere. Once again, I would like to thank our customer for the opportunity to collaborate on a sophisticated offshore support vessel that is the UT 755 LN," said Mr. Jin Xin, Chairman and Chief Executive Officer, JES.

"We are very pleased with the close cooperation between JES and our technical team at the yard. The steel cutting for the two first units is a key milestone and we are looking forward to the continued close cooperation towards the next phase of the construction. 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," said Mr. Kenneth Fjeld, Managing Director of Vega Offshore.