Selangor, 29 January 2026 – Orkim Berhad, Malaysia’s leading marine transportation group, has secured contract extensions from Shell, reinforcing its long-standing partnership with a key global energy major and enhancing earnings visibility for the coming years.
The Group announced that its wholly owned subsidiaries, Orkim Leader Sdn. Bhd. and Orkim Power Sdn. Bhd., have entered into side letters to extend their existing consecutive voyage charter (CVC) contracts with Shell Malaysia Trading Sdn. Bhd. and Shell Timur Sdn. Bhd. (collectively, the Charterers).
Extended Charter Periods With Upside Optionality
Under the revised terms, the Charterers have agreed to a one-year extension of the existing CVC contracts. The extended charter period for Orkim Power will commence on 1 February 2026, while Orkim Leader will begin its extension on 1 March 2026.
In addition, the side letters grant the Charterers an option to further extend the contracts by another year. Subject to the exercise of this option, the charter for Orkim Power could run until 31 January 2028, while Orkim Leader’s charter may extend through 28 February 2028, providing the Group with longer-term revenue visibility and fleet utilisation certainty.
Operational Reliability Reinforced
Chief Executive Officer of Orkim Berhad, Captain Cheah Sin Bi, said the extensions underscore Orkim’s strong operational track record and deep customer relationships.
“We are pleased to extend our long-standing partnership with Shell for both Orkim Leader and Orkim Power. These extensions reflect our proven operational reliability and reinforce our strong customer relationships with key energy players. Together, these contracts enhance earnings visibility, strengthen our order book, and support our strategy of maintaining high fleet utilisation,” he said.
Additional Contract Wins Bolster Outlook
Separately, another wholly owned subsidiary, Orkim Marine Sdn. Bhd. (OMSB), which owns Orkim Glory, has also secured a one-year extension to its existing CVC contract with the same Charterers, effective 1 February 2026.
Earlier this month, OMSB further strengthened the Group’s contract portfolio by securing a Contract of Affreightment from Boustead Petroleum Marketing Sdn. Bhd. for a two-year term, with an option to extend for an additional year. This adds another layer of medium-term earnings visibility to Orkim’s marine transportation operations.
Strategic Implications
Taken together, the contract extensions and new charter arrangements reinforce Orkim’s positioning as a preferred marine transportation partner for energy majors, while underpinning a stable earnings base amid a volatile global energy and shipping environment. The Group said it remains focused on disciplined fleet management, high utilisation rates and deepening relationships with long-term customers to sustain predictable cash flows.
