Malaysia's Straits Energy units to sell two tugs for $2m

Indirect subsidiaries of Straits Energy Resources, Victoria 1 and Victoria 3, have entered into separate memorandum of agreements (MOA) with Sealion for the disposal of two tugs, the Victoria 1 and Victoria 3. The MOAs were signed on October 21, 2025, for a total aggregate consideration of $2,012,500.

The Victoria 1, built in 1992, was sold for $826,500, while the Victoria 3, built in 2001, was sold for $1,186,000. Both vessels are Malaysian-flagged.

The consideration was arrived at on a willing-buyer, willing-seller basis, taking into account market valuations and an independent valuation report which indicated the agreed price is at a premium. Delivery of the tugs is expected by October 30, 2025, in Singapore.

The rationale provided for the disposal includes a lack of viable business opportunities for the vessels, significant cost savings for the group on operating costs, and the desire to streamline non-core assets.

The proceeds are expected to be used for the repayment of bank borrowings, settlement of amounts owing to suppliers, and related companies within twelve months.

The disposal is expected to be completed by December 2025 and does not require shareholder approval.