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Dubai’s GulfNav in talks for stake in Singapore’s Atlantic Navigation

Dubai’s GulfNav in talks for stake in Singapore’s Atlantic Navigation

GulfNav announced plans for rights issue earlier this month

Dubai’s Gulf Navigation (GulfNav) Holding said on Sunday it was in discussions to acquire a majority stake in Singapore Atlantic Navigation Holdings.

Atlantic, an offshore marine logistic services group listed on the Singapore Stock Exchange, has total assets of $177m.

GulfNav said the acquisition coincides with talks with major oil companies in the Gulf region to provide project solution and offshore services and would create added opportunities for both companies.

It also comes following the firm’s announcement this month that it planned to undertake a rights issue that would increase its share capital by Dhs448.33m ($122m) to Dhs1bn ($272.2m).

Read: Dubai’s Gulf Nav down after confirming rights issue

Atlantic operates a fleet of 25 vessels including anchor handling tugs and AHT supply vessels, jack-up accommodation barges, offshore cargo barges, towing tugs, offshore supply vessels and Lift boats.

Of these it wholly owns 17, has two that are jointly owned and six that are cross-chartered or managed by the group.

A further seven offshore support vessels are on order to fulfil a five-year charter contract, with a two-year option, awarded by a Middle Eastern national oil company for 10 OSVs with a value of $236m.

The company also owns 50 per cent in a consortium to undertake a $45m deconstruction project for an abandoned oilfield in Abu Dhabi and has first refusal on providing the entire marine spread for the project.

GulfNav said its investment would give it an interest in 32 vessels in total and allow it to deliver support services to offshore oil installations and manage ship and deliver petrochemical derivatives.
Completion of the deal is subject to due diligence.

“This investment marks a major milestone in Gulf Navigations strategy to grow our offering to our customers in the regional offshore oil and gas sector,” said managing director and group CEO Khamis Juma Buamim.

“At the same time it gives Gulf Navigation a significant position in the GCC regional OSV O&G market.”

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