Long-Term Contract Win Highlights Growing Demand and Competitive Pressure for Offshore Vessels
Bhagwan Marine has locked in a five-year, $75 million contract for its Coral Knight vessel with Jadestone Energy, reinforcing its foothold in Australia's offshore energy sector.
- Five-year contract awarded to Bhagwan Marine for Coral Knight vessel
- Contract valued at approximately AUD 15 million annually
- Supports Jadestone Energy’s Montara Field operations offshore Western Australia
- Contract validates strategic acquisition of Coral Knight vessel
- Highlights growing demand for larger offshore energy support vessels
Bhagwan Marine's Strategic Win
Bhagwan Marine Limited (ASX, BWN), Australia's leading marine solutions provider, has secured a significant five-year contract with Jadestone Energy for its Coral Knight vessel. Valued at around AUD 15 million per year, this deal marks a major milestone in Bhagwan’s expansion within the offshore energy sector.
The Coral Knight, a 60.5-metre Anchor Handling Tug Supply (AHTS) vessel acquired earlier this year, has been actively supporting Jadestone’s operations at the Montara Field, located offshore Western Australia. Since February 2025, the vessel has been instrumental in cargo and fuel supply, rig support, and offtake services, underpinning critical offshore activities.
Market Demand and Operational Excellence
Bhagwan’s Managing Director and CEO, Loui Kannikoski, emphasized the disciplined nature of the contract award process, noting the Coral Knight’s consistently high utilisation as a key factor. This reflects a tight global market for larger AHTS vessels, driven by increasing offshore energy activity and the need for reliable marine support.
The contract not only extends existing services but also validates Bhagwan’s strategic decision to acquire the Coral Knight, enhancing its fleet capabilities and positioning the company to capture growing demand in the offshore energy market.
Implications for Bhagwan and the Sector
This long-term agreement provides Bhagwan with a stable revenue stream and strengthens its reputation as a trusted partner in complex offshore operations. With over 1,000 skilled professionals and a diverse fleet, Bhagwan is well placed to support expanding offshore projects, including subsea, ports, and defence sectors.
As offshore energy companies ramp up exploration and production, the demand for specialised vessels like the Coral Knight is expected to remain robust, offering Bhagwan a platform for sustained growth.
Bottom Line?
Bhagwan’s Coral Knight contract cements its offshore energy presence, setting the stage for further fleet expansion and market penetration.
Questions in the middle?
- How will this contract impact Bhagwan’s overall revenue and profitability in the coming years?
- What are the potential risks or operational challenges associated with long-term vessel contracts in a volatile energy market?
- Could Bhagwan leverage this success to secure additional contracts or expand its fleet further?
