KEYFIELD SIGNS MOA WITH CHINESE FIRM TO ACQUIRE US$20.55 MLN CABLE-LAYING BARGE

KUALA LUMPUR, April 15 (Bernama) -- Keyfield International Bhd’s wholly owned subsidiary Keyfield Ventures (Labuan) Ltd (KVL), has signed a memorandum of agreement (MoA) with China’s Taizhou Sanfu Ship Engineering Co Ltd to acquire a new 98-metre-long Dynamic Positioning 2 (DP2) cable-laying barge.

In a filing with Bursa Malaysia today, Keyfield said the barge, to be renamed “Keyfield Blessing” (KBlessing), is being acquired for US$20.55 million (approximately RM90.8 million).

In addition to the acquisition, KVL has entered into a bareboat charter agreement with China’s Dejing Group Co Ltd, under which the barge will be chartered out for a period of one year, with an option to extend for another year at KVL’s discretion.

“During the entire bareboat charter period, Dejing will bear all operational costs of the vessel, including mobilisation, crew, and maintenance, while KVL will only be responsible for hull and machinery insurance costs,” Keyfield said.

Keyfield stated that the acquisition aims to diversify its business and reduce reliance on the upstream oil and gas sector, which currently contributes nearly all of its revenue, by expanding into other maritime sectors.

“As such, we have identified KBlessing, which can be used for subsea power cable laying, as one of our new growth areas. It will be chartered to Dejing for a one-plus-one year term to generate immediate revenue,” it said.

In a separate statement, Keyfield said KBlessing is currently docked in Taizhou, China, where it will be delivered to the Keyfield Group and subsequently to Dejing to begin its charter.

“KBlessing will then be mobilised to its project location in Saudi Arabia and redelivered to Malaysia or Singapore upon the completion of the contract,” Keyfield said.

Keyfield’s chief executive officer and executive director Datuk Darren Kee said KBlessing is the company’s first vessel to be chartered on a bareboat basis, meaning it will not handle the operational management of the vessel.

“As cable laying is a new venture for our company, and with the project located in Saudi Arabia, we opted for a bareboat charter model to reduce operational risks while ensuring steady cash inflow,” he said.

He noted that investing in a DP2 cable-laying barge aligns with global market trends and long-term growth opportunities.

“Global decarbonisation goals are accelerating offshore wind projects, which require extensive subsea power cable infrastructure. Acquiring KBlessing and chartering it immediately offers both immediate revenue and long-term strategic relevance in a rapidly evolving market,” Kee added.

-- BERNAMA