Mermaid signs several contracts in Middle East

Mermaid Maritime has announced that it has, through its subsidiaries, signed seven different subsea contracts and two contract extensions.

The contracts were obtained by Mermaid’s subsidiaries Mermaid’s Western Hemisphere (MSSW), Mermaid’s Eastern Hemisphere (MSSE) and associate Asia Offshore Drilling (AOD).

Mermaid said on Friday that MSSW has signed seven new subsea project contracts in the Middle East worth, in estimate, $11 million. The company stated the work scope includes subsea survey, inspection, repair and maintenance as well as light construction. The company further said that the jobs will be performed in various offshore areas of Qatar and the Kingdom of Saudi Arabia such as Manifa, Safaniya, Zuluf, and Tanajib. Most projects will be completed by the end of August 2016.

One of the projects has already started on May 8, and it concerns Mermaid’s DP2 DSV, the Mermaid Endurer. The vessel will perform light construction intervention with an estimated working period of circa 100 days, offshore Qatar.

Chalermchai Mahagitsiri, Mermaid’s CEO, said: “Mermaid Endurer is the pride of the fleet of Mermaid, and we are pleased to have the ship deployed once again here in Qatar. Additionally, the chartered-in DP2 construction barge Mubarak Supporter has just completed a successful cable laying campaign, and will demobilize in the Kingdom of Saudi Arabia over the coming days.”

Mermaid added that its other subsidiary, Mermaid’s Eastern Hemisphere (MSSE), has been awarded a one-year extension of its subsea construction support services contract with a major engineering, procurement, construction, installation and commissioning contractor in Thailand serving a major international upstream oil and gas operator.

The current existing contract was initially awarded for a two-year campaign ending in December 2016. The extension will last until the end of December 2017. Total estimated value of the two-year contract for 2015 and 2016 is $ 51 million with an expected duration of approximately 325 days.

The work will be completed using the DP2 DSV the Mermaid Commander along with diving systems, plus associated equipment and specialist personnel.

Chalermchai Mahagitsiri said: “This is the twelfth consecutive year Mermaid is awarded the work. The contract term has been extended for one more year to the end of December 2017. Our experienced operational team, strategic local partnerships, strong financial discipline, and quality performance and safety record are key success factors that will ensure that we will survive and thrive in these challenging market conditions”.

Drilling deal

Mermaid said that its associate company AOD has secured a three-month interim contract extension for its jack-up rig AOD I. The unit is now committed until July 2016. The contracts for jack-ups AOD II and AOD III are still due to expire in July 2016 and October 2016 respectively. All three rigs are at a day rate of $125,000 in effect from January 2016.

Chalermchai Mahagitsiri stated: “The ‘AOD I’, ‘AOD II’ and ‘AOD III’ are high specification jack-up drilling rigs. Built to the popular MOD V B-Class model by Keppel FELS in Singapore, these rigs are on long-term drilling contracts from 2013 to 2016 in Saudi Arabia with an extension option. The rigs had undergone customization at client expense to suit working conditions and workplace configuration and have achieved high operational efficiency, safety, and reliability since the commencement of their respective drilling programs to date. We know that the customer is pleased with its excellent performance and negotiation for contract extensions for all three jack-up rigs is in progress”.

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