TANJUNG OFFSHORE BERHAD

TANJUNG OFFSHORE BERHAD (662315-U)
ANNUAL REPORT 2009
MANAGING DIRECTOR’S REVIEW
Maintenance services at our workshop in Kemaman
Maintenance services
Tanjung Maintenance Services Sdn Bhd (TMS), a subsidiary
of Tanjung provides complete maintenance services for a
full range of engineering equipment in both the upstream
and downstream sector of the oil and gas industry. Full
maintenance services which involves general services and
repair, overhaul and test for rotating equipment, fabrication of
parts and machining, metal coating, rotor dynamic balancing,
condition based monitoring and testing facilities for various
types of engineering equipment. As of todate, TMS is
operating from fi ve (5) main workshops of which two (2) are
located in Kemaman, Terengganu, one (1) each in Miri, Bintulu
and Labuan. We currently employ approximately 220 staff
of various experiences and expertise. We also provide both
in-house training and external training with our foreign based
principals.
In FYE 2009, the Group registered a revenue of RM44.76
million as compared to RM73.35 million in FYE 2008. We aim
to increase our market share in this sector of the industry and
have been networking with new and existing clients in both
Peninsular and East Malaysia such as Petronas Dagangan Sdn
Bhd, Petronas (Penapisan) Terengganu Sdn Bhd, Petronas Gas
Berhad, BASF Petronas Chemicals Sdn Bhd, BP Chemical
Sdn Bhd, ExxonMobil Exploration and Production Malaysia
Inc, Bhd, Petlin Malaysia Sdn Bhd, Nippon Oil Exploration
Malaysia Ltd and and Murphy Sarawak Oil Co.
We are one of the few local service providers which have set
up complete workshops in all the main oil and gas hubs in both
Peninsular and East Malaysia. We have trained our human
capital and invested in the latest technologies to enable us
to move towards niche and knowledge based maintenance
technologies. In doing so, we aim to be at the forefront of the
total solutions provider concept for maintenance services in
Malaysia and the region.
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MV Tanjung Gelang on location
Drilling and Production Platform Services
As of todate, we are operating the jack-up drilling rig, “THE
208” with Hercules Offshore Inc, which has since been
deployed to location and currently chartered to Murphy Oil on
a long term contract.
We are also operating the Mobile Offshore Production Unit
(“MOPU”) at the Cendor oilfi eld for Petrofac (Malaysia PM-304)
Limited on long term basis since 2006. The MOPU is currently
used for production of oil from Cendor fi eld on a long term
contract.
In FYE 2009, drilling and production platform services
generated approximately RM195.77 million in revenue as
compared to RM214.83 million registered in FYE 2008.
Offshore Support Vessels Services
In FYE 2009, the offshore support vessels services division
contributed a total revenue of RM160.27 million which
represented an increase of 95% as compared to RM82.19
million recorded in FYE 2008. We managed to secure the
relevant fi nancing for the fi ve (5) new AHTS vessels in the
midst of a global fi nancial crisis. We are also grateful that our
principal bankers were supportive of our operations which
enabled us to complete our fl eet expansion exercise. During
the FYE 2009, the Group successfully launched and took
delivery of an additional four (4) units of Anchor Handling Tug &
Supply (AHTS) vessels, namely, MV Tanjung Sari, MV Tanjung
Biru 1, MV Tanjung Biru 2, MV Tanjung Dahan 1 and one (1)
unit of Well Testing and Servicing Vessel (WTSV), MV Tanjung
Gelang. The Group is also expected to take delivery of an
AHTS vessel, MV Tanjung Dahan 2 in May 2010. We have
also recently secured the relevant long term charters for the
aforesaid fi ve (5) new AHTS vessels.