Dec. 17 (Bloomberg) -- Pacific Radiance Ltd., an operator of ships used in energy exploration, will invest $800 million in five years to expand its fleet as Asia’s economic growth spurs demand for oil and gas.
The company plans to own and operate 100 vessels by 2019 compared with 62 now, James Pang, managing director of commercial and business development, said in an interview yesterday. Pacific Radiance currently has 17 ships on order that will be deployed in projects in Indonesia, Malaysia, Australia, Latin America and Africa, he said.
Demand for offshore support vessels is rising as energy companies step up exploration and production from the North Sea to West Africa and in new areas such as the Arctic Sea. The Asia-Pacific region will account for 20 percent of the $223 billion in global deepwater capital expenditure in the next five years, according to U.K.-based researcher Douglas-Westwood.
“The growth in Asia’s energy demand is supported by an enlarging population and increasing proportion of middle-income earners,” Pang said. “We expect opportunities in the region to be robust and sustained in the long term.”
Pacific Radiance rose 0.6 percent to 86 Singapore cents yesterday in the city. The shares have dropped 7 percent since they were listed on Nov. 13.
Pang didn’t say how the company plans to raise the investments needed for the expansion.
Pacific Radiance raised S$154.7 million ($123 million) from its initial public offering in Singapore. Its Indonesia joint venture PT Logindo Samudramakmur Tbk listed last week after raising 356.7 billion rupiah ($29 million) in a share sale.
To contact the reporter on this story: Jasmine Ng in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Linus Chua at email@example.com