TANJUNG OFFSHORE BERHAD

MANAGING
DIRECTOR’S REVIEW
MV Tanjung Gelang performing well testing activities for Carigali PTTEPI Operating Company (CPOC)
Offshore Support Vessels Services (cont’d)
As of May 2010, the Group will be operating sixteen (16)
wholly owned offshore support vessels which are chartered
out to oil majors operating in Malaysian waters. Save for
two (2) offshore support vessels, MV Tanjung Manis and MV
Tanjung Gaya which are on spot charters, all our vessels
are on secured long term charters up to FYE 2016 and we
are confi dent that the demand for these vessels will remain
robust given the continuous development and production of
new and existing development programmes for various oil
and gas Production Sharing Contracts (PSCs), spearheaded
by PETRONAS together with other oil majors operating in this
region.
Our People
As of todate, the Group employs a total of 550 employees
comprising senior management, corporate executives,
professional engineers and marine offi cers at all levels of
responsibilities within the Group. Apart from various capital
investments in offshore support vessels, maintenance
workshops and facilities, the Group has also invested
substantially in human capital, which is also one of the
important aspects of the Group. In line with our expansions
and growth in business operations, we have also recruited
and provided various training programmes at all levels within
the Group. During the year, we have sent various engineering
teams for complete technical training at our principals’ centres,
both local and overseas for in-depth exposures on the latest
technological advances in the oil and gas industry.
We have also sponsored various batches of students at
Akademi Laut Malaysia (ALAM) where successful marine
students are offered employment with Tanjung Group. Through
these sponsorship programmes, we are able to attract local
marine talents and providing a qualifi ed workforce for Tanjung
Group’s future marine expansions.
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TANJUNG OFFSHORE BERHAD (662315-U)
ANNUAL REPORT 2009
Equipped with the latest technical knowledge and hands on
experiences, our engineers of multiple disciplines would be
able to offer their services to the oil majors, in the shortest time
frame at their locations especially for urgent projects or during
unforeseen emergencies.
Outlook for the Future
Despite the reduction in overall profi tability of the Group in FYE
2009, we are still upbeat on the prospects of both the upstream
and downstream sectors of the oil and gas industry in Malaysia.
We take cognizance of the operational losses at our subsidiary
CERS UK and have also implemented a turnaround plan for
immediate cost reduction measures and restructuring of the
production processes for the manufacturing of waste heat
recovery units for the international markets. On the back of a
new contract secured from the U.S. recently, we are confi dent
that CERS UK will turnaround and deliver better results in the
year ahead.
In the past twelve (12) months, we have witnessed oil
prices treading at lows of USD35 per barrel which has since
recovered and stabilised at between USD70 - USD80 per
barrel in recent months. As such, we remain positive on the
long term opportunities within the industry based on our capital
investments in recent years, in particular, the offshore support
vessels, equipment facilities and the continuous development
of our human capital. In the long term, we believe that most oil
majors including PETRONAS will continue to spur exploration,
development, production and maintenance activities. This
is evident from the recent engineering equipment contracts
and the award of long term charters for all fi ve (5) new AHTS
vessels which were launched and delivered to the Group in
late FYE 2009 and early FYE 2010.