SAAG ... Sept 2008

SAAG Consolidated (M) Bhd’s subsidiary has signed a memorandum of agreement (MOA) with Airia Jaya Marine (S) Pte Ltd to purchase an anchor handling tug and supply “Hull 885C” for US$19.7 million (RM67.6 million). The vessel formed the key part of a contract that could be worth more than RM36 million.

SAAG had secured a contract from a Singapore company to charter the vessel for 24 months, with an option to charter up to another 24 months. The total value of the initial period of the contract would be approximately RM36 million.

Additional equipment would be installed on the vessel for the purposes of the contract making the value of the vessel some US$22 million.

The company expects to complete the MOA by the fourth quarter of the year while the contract is due to commence by January next year.