Icon Offshore bags long-term AHTS vessel work with Shell

Malaysian offshore support vessel provider Icon Offshore has won a long-term contract with Shell for the provision of an anchor handling tug supply vessel.

Illustration: Offshore vessels. Image by jnzl/Flickr – shared under CC BY 2.0 license. The image has been cropped

Icon Offshore said Monday that the 825-day contract had started on April 6. Shell will have extension options to extend the contract for up to two years.

The contract is valued at approximately RM39 million ($9,3 million) inclusive of the optional extension period. Icon did not say which vessel has been deployed under the contract.

The contract is for work in Malaysia as the deal has been awarded by Shell’s Malaysian subsidiaries.

Icon Offshore last month posted a drop in 1Q revenue and saw net loss deepen in the first quarter, compared to the corresponding period in 2018.

The company on May 31 said it continued to focus on securing new contracts and maximizing utilization rate through competitive tendering for domestic and regional contracts, as well as leveraging on its continued presence in Brunei.

The Group revenue was RM41.8 million for the quarter ended 31 March 2019, with reported vessel utilization for the quarter at 46.1 percent.

“The upstream exploration and production activities in Malaysia are expected to gradually increase but continue to be volatile and underpin the demand for OSV. The Group continues to work on conserving cash, finalizing its debt restructuring scheme and reducing the cost to improve its liquidity and competitiveness on the back of leaner Balance Sheet,” Icon Offshore said in its recent quarterly results presentation.

Offshore Energy Today Staff

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