Keyfield International Expands into Cable Laying Market with Acquisition of DP2 Barge
Keyfield International, a Malaysia-based fleet owner of self-propelled accommodation workboats, is making a strategic move into the cable laying market with the acquisition of a newly-built DP2 cable-laying barge for $20.5 million. The 98-meter-long barge, soon to be renamed Keyfield Blessing, will be purchased from Taizhou Sanfu Ship Engineering in China.
The acquisition will be carried out by Keyfield Ventures (Labuan) Limited, a newly-incorporated 100% subsidiary of Keyfield. The entire purchase will be funded internally by Keyfield group without the need for external borrowings.
Keyfield Blessing is a specialized barge designed for installing underwater cables, particularly for power cables connecting offshore wind farms to the main grids. It can also be retrofitted for laying telecommunication data fiber optic cables. The vessel’s DP2 system, with a cable load capacity of 7000T and a cable laying plow reaching 5m depth, allows it to self-propel while undertaking cable-laying operations at a speed of 600 meters per hour.
In addition to the acquisition, Keyfield group has entered into an agreement with Dejing Group to charter out Keyfield Blessing on a bareboat charter basis for an initial period of one year, with an optional extension of one additional year at Keyfield’s discretion. The charter agreement is valued at $9.1 million, including the extension option.
During the bareboat charter period, the charterer will be responsible for the operational costs of the vessel, including mobilization costs to the project location, with the exception of hull and machinery insurance, which remains Keyfield’s responsibility.
Keyfield Blessing, currently located in Taizhou, China, will be delivered to Keyfield group and subsequently to Dejing at the same location for the commencement of the charter. The vessel will then be mobilized to its project location in Saudi Arabia and later redelivered to Malaysia/Singapore at the end of the charter period.
Keyfield Blessing, Panama-flagged, will be chartered by Dejing for the Farasan Submarine Cable Project in Saudi Arabia. This strategic move aligns with Keyfield’s vision to diversify its fleet and increase non-oil and gas revenue to contribute up to 20% of the Group’s total revenue.
According to Darren Kee, Keyfield’s Group Chief Executive Officer and Executive Director, “Investing in a DP2 Cable Laying Barge is a strategic decision driven by current market trends and long-term opportunities. Global decarbonization goals are accelerating offshore wind projects, necessitating extensive subsea power cables for grid connectivity worldwide. Acquiring Keyfield Blessing and chartering it out offers us immediate revenue opportunities and long-term relevance in a rapidly evolving market.”