China’s JES International Turns to Offshore Oil and Gas For Boost

JES typically constructs bulk carriers and containerships, but with a historic slump in orders, the offshore oil and gas sector seems too promising to pass up.

With scores of Chinese shipbuilders struggling to stay afloat, some have been forced to diversify their offerings and look to adjacent markets for even the slightest boost.  One such yard is the Singapore-listed JES International Holdings Limited, which today announced its entrance into the oil and gas sector with its first ever order for a PSV.

Based in China, JES said Monday that it has entered into a shipbuilding contract with an unidentified Norwegian owner that calls for the construction of one of Rolls-Royce popular UT 755 design platform support vessels.

The contract marks JES’ first ever contract for an offshore support vessel in its 30 year history and is representative of the Group’s expansion from building commercial shipping vessels to constructing more complicated and sophisticated offshore support vessels.

“As the shipping industry remains in the doldrums, it is part of the Group’s strategy  to maximise, enhance, and leverage on our capabilities to explore growth opportunities beyond the commercial shipbuilding industry into the more robust offshore oil and gas sector to enhance shareholders’ value,” says Chairman and CEO of JES, Jin Xin.

JES says the new contract has been secured from a new customer based in Norway, and delivery is expected to take place at the end of FY2014. The contract was awarded through its wholly owned subsidiaries, JES Universal Co. Private Limited and Jiangsu Eastern Heavy Industry Co. Ltd.