Nam Cheong has agreed to sell an 11-year-old platform supply vessel, the SK Paragon, to an undisclosed Indonesian customer for $19.8 million, with delivery scheduled for the first quarter of 2026. This transaction is part of the company's fleet reprofiling strategy.

Market Context and Rationale

The sale aligns with a significant increase in regional offshore activity. Indonesia is driving this momentum, aiming for an oil production target of 1 million barrels per day by 2029. Upstream oil and gas investments in the country reached a decade-high of $7.19 billion in the first half of 2025. Nam Cheong stated the vessel is intended for near-term deployment within the Indonesian offshore sector to support this uptick in upstream investments.

Company Strategy and Position

Nam Cheong's CEO described the company as being at a "sweet spot" due to its combined offshore support vessel chartering and shipbuilding businesses. This sale marks the group's second vessel sale in two months, following a $20.5 million platform supply vessel sale to a Vietnam-based group in December. Following this latest transaction, Nam Cheong will manage a fleet of 36 OSVs with an average age of nine years. The company has also recently expanded its chartering portfolio, securing $47.5 million in new contracts in Japan and the Middle East in July.

Transaction Details

The 3000-deadweight tonne vessel was built by Fujian Southeast Shipbuilding in China. Citing confidentiality and strategic considerations, a company spokesperson declined to disclose further details regarding the end-client or the exact project for which the vessel will be deployed.