Kim Heng 5G2 has announced that Adira Renewables, its wholly-owned subsidiary, has partnered with Soiltech Engineering Korea (STE) to enter into a vessel framework agreement with an established global offshore wind farm developer in Korea.
Under the agreement, Kim Heng will provide a geotechnical drilling vessel for various geotechnical survey projects. Together with STE, Kim Heng will provide offshore geotechnical investigation services of all of the developer’s offshore wind farm projects in Korea.
The agreement has a term of four years and can be extended and renewed on a mutual basis for another two years at the end of term. The arrangement also provides right of first refusal for the windfarm developer to secure the use of Kim Heng’s geotechnical vessel and geotechnical survey services at agreed rates for the entire term of the agreement.
Through the collaboration, Kim Heng says it will benefit by executing geotechnical survey works in the pre-construction phase of larger, more complex offshore wind farm projects by tapping on STE’s technical nous in soil investigation works.
Kim Heng says it is also an opportunity to expand its renewables footprint with offshore wind farm projects in Korea.
Thomas Tan, CEO of Kim Heng, says: “We are excited about our strategic collaboration with Soiltech to enable us to provide geotechnical investigation services to one of the largest renewable offshore wind farm developers globally. This partnership empowers us in making a significant step forward in Kim Heng’s diversification into renewable energy.”
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Soiltech CEO Yun Sang Muk adds: “We are proud to be in this partnership with Kim Heng. With our extensive global experience in geotechnical and physical ground investigation, we bring to this partnership our expertise in soil analysis, advanced laboratory testing and engineering services. Our specialisation, particularly in offshore wind power and jack up platforms, through this partnership, will strengthen our competitiveness in the Korean market.”
Barring unforeseen circumstances, the contract is expected to contribute positively to Kim Heng’s earnings per share and net tangible assets.
Shares in Kim Heng closed unchanged at 8.1 cents on Feb 6.
