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Singapore’s ‘big boy’ Teras Offshore forced into liquidation
A trailblazer in the use of liftboats in southeast Asia succumbs to the offshore market downturn, selling off its fleet, writes VesselsValue commercial analyst offshore Charlie Long
Teras Offshore, once a notorious big boy in Singapore’s offshore oil and gas market, owning a varied fleet of liftboats, jack-ups and small anchor handling tugs, was forced to close its doors for good on 30 December, officially entering a court-managed liquidation.
A subsidiary of Ezion Holdings, Teras Offshore was a well-known trailblazer behind the use of multi-purpose, self-propelled jack-up rigs (liftboats) in the southeast Asian energy markets. The company built its fleet during the peak of the offshore oil and gas market back in 2012, and like many other vessel owners in the industry at that time, had its fingers burnt.
The 2014 market downturn hit Teras Offshore hard, with a potent combination of low day rates, contract postponements and, in some instances, cancellations and general uncertainty was not conducive to successful business operations. The downturn showed no signs of relenting and Teras was forced further and further into the red. Then came Covid-19, the proverbial straw that broke the camel’s back, and an already fragile owner was unable to take any more.
To circumvent its money woes, Teras Offshore began gradually selling off tonnage in an attempt to transition from a traditional offshore vessel owner into a ship management company. The change in business strategy was unsuccessful due to a lack of interest in further restructuring from creditors. Since Q4 2020, Teras Offshore sold 55% of its total liftboat fleet generating US$93.5M in capital through sales. What has become of these assets? Who owns them now? Have they been successfully repurposed, and if so, what are they working on? Let’s review the status of these liftboats, with data as of February 2022.
Teras Fortress 2
On 31 December 2020, Teras Fortress 2 (450-ft class, built 2015 at Triyards Ho Chi Minh) was sold to Virgo Shipping for US$22.0M. VesselsValue’s market value the day before the sale was US$22.6M.
Now renamed Sheng Ping 001, the vessel had been contracted with China General Nuclear Power Group to install wind turbines in the CGN Huizhou windfarm near Hong Kong. On 25 July 2021, Sheng Ping 001 reportedly capsized while installing a MySE6.25-180 turbine at the CGN Huizhou Wind Farm.
Using VesselsValue’s AIS mapping tool, the unit was shown outside the CGN Huizhou windfarm.
Teras Conquest 7
On 29 January 2021, Teras Conquest 7 (320-ft class, built in 2015 at Triyards) was sold with its special survey/dry and drydocking (SS/DD) overdue for US$13M to Elite Point Pte. VesselsValue’s market value the day before the sale was US$18M.
Teras Conquest 7 is on charter to Saudi Aramco working on the Manifa Oil field in the Middle East Gulf. Using VesselsValue’s mapping tool, Teras Conquest 7 was shown to be operating in the Manifa Oil field since 6 April 2021.
Teras Conquest 9
On 5 March 2021, Teras Conquest 9 (336-ft class, built in 2016 at Triyards) sold for US$18.5M, SS/DD due to SLH Ship Leasing. VesselsValue’s market value the day before the sale was US$22.5M.
Now renamed Hong Shan Long, the unit has been used for offshore wind turbine installation in the Fujian Putian City Flat Bay C windfarm.
Teras Conquest
On 26 October 2021, Teras Conquest (320-ft class, built in 2012 at Triyards Ho Chi Minh) was sold to Zakher Marine for US$5M. VesselsValue’s market value the day before the sale was US$12.5M.
Renamed QMS Conquest, the vessel is currently located in Musaffah.
Rising Phoenix
On 26 October 2021, Rising Pheonix (320-ft class, built in 2010 at Triyards Ho Chi Minh) was sold to Zakher Marine for US$7M. VesselsValue’s market value the day before the sale was US$11M.
Renamed QMS Al Oula, the vessel is located at Musaffah.
Teras Conquest 5
On 26 October 2021, Teras Conquest 5 (320-ft class, built in 2012 at Triyards Ho Chi Minh) was sold to Zakher Marine for US$8M. VesselsValue’s market value the day before the sale was US$13M.
Renamed QMS Gloria, the vessel is located at King Abdul Aziz Seaport.
Teras Fortress
On 26 October 2021, Teras Fortress (450-ft class, built 2014 at Triyards Ho Chi Minh) was sold to Zakher Marine, laid up with DD overdue for US$20M. VesselsValue’s market value the day before the sale was US$20M.
Renamed QMS Subhiya, the vessel is currently located in Ras Laffan.
What is left for sale and where?
Teras Offshore still has three Liftboats remaining for sale. All three units have been marketed by brokers since Q4 2019, unable to attract any serious buying interest.
Teras Conquest 8 and Teras Conquest 1 remain unsold, with both units currently laid up in Lagos, Nigeria. Details for the vessels are: Teras Conquest 8 (336-ft class, built in 2017 at Triyards Ho Chi Minh, SS due June 2022) and Teras Conquest 1 (320-ft class, built 2010 Triyards Ho Chi Minh, SS due January 2025).
Both units have been previously marketed by brokers with an asking price of around US$18M each.
Teras Conquest 6 remains unsold. According to AIS, the unit is currently active operating near the KE oil and gas field located in the Java Sea Indonesia. In August 2021, the unit was supposed to complete its contract in Indonesia. This has likely been extended with charterers or renegotiated.
Teras Conquest 6 is 320-ft class, built in 2012 at Triyards Ho Chi Minh, with SS due July 2022.
The unit was previously marketed by brokers with an asking price of around US$18M.
Teras Offshore has been underperforming for a number of years, and consequently the company is now deemed insolvent and unable to pay off its existing debt. Since 2020, Teras Offshore has been in a state of retraction, with a mix of bank-driven sales to remove assets from the fleet to release equity.
VesselsValue expects to see more of this activity throughout 2022 as the company closes its doors.
Unfortunately ,Teras Offshore has met a similar fate as its Singapore compatriot owners, with a slow and agonising bankruptcy.
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