Malaysia-listed offshore services provider Alam Maritim Resources acquired offshore support vessel (OSV) OLV Venture 1 for US$60m.

The acquisition of the OSV was signed by Cyprus-based Wellspring Marine Trading and MDSV 1, a wholly owned subsidiary of Deepsea Leader Venture, which is a joint venture between Alam Maritim and Singapore-listed offshore marine company, Vallianz International.

Under the contract terms, the acquisition is projected to be completed by mid-April 2015. After that, the vessel shall be registered under the Malaysian flag and be deployed in the operational waters of Malaysia and Southeast Asia to support the exploration and production (E&P) activities in the region.

At present, OLV Venture 1 is registered in China and the 2014-bulit ship is of 85M DP2 6000 brake horse power (BHP), classified under the American Bureau of Shipping classification society (ABS).

In its filing in the Malaysian stock exchange Bursa Malaysia, Alam Maritim stated that the acquisition is in line with the fleet expansion plan of the company's core business in providing marine support services to the offshore oil and gas facilities.

Going forward, Alam Maritim expects the demands for marine support services to increase due to the growth of the upstream sector of the oil and gas industry.

The company added that the acquisition of the OSV will be financed partly by proceeds from the new share issuance recently issued by Alam Maritim and borrowing from financial institution with staggered payment structure.

Additionally, the new vessel is expected to contribute positively to the future earnings and net tangible assets of Alam Maritim for the financial year ending 2015 and beyond.