GMS Confirms One Year Contract Extension For Large Class SESV In The Southern North Sea
Gulf Marine Services (LSE:GMS), the leading provider of advanced self-propelled self-elevating support vessels (SESV) serving the offshore oil, gas and renewable energy sectors, is pleased to confirm that a contract extension has been exercised for one of its Large Class vessels in the Southern North Sea.
The extension is for an SESV that has been chartered to an International Oil Company (IOC) since Q3 2012. The contract has been extended for a further year effective from Q2 2015, leaving a six month option remaining. The vessel will continue supporting well service and maintenance work for the client.
There has been a small increase in the charter rate for the vessel, which maintains margins at the previous level, to recognise additional modification work that was required by the client.
Duncan Anderson, Chief Executive Officer of GMS, said:
“Confirmation of this contract extension by a major IOC is testament to the cost-effective well service and maintenance solutions our SESVs provide, which is increasingly relevant in the current oil price environment. We continue to see strong demand for our assets driven by our core brownfield (opex-focused) oil and gas client base and evidenced by our fully chartered fleet.”
For further information please contact:
Gulf Marine Services PLC
Tel: +971 (2) 5028888
Tel: +44 (0)20 3772 2500
Notes to Editors:
Gulf Marine Services PLC, a company listed on the London Stock Exchange, was founded in Abu Dhabi in 1977 and has become one of the leading providers of self-propelled self-elevating support vessels (SESV) in the world. The fleet serves the oil, gas and renewable energy industries from its offices in the United Arab Emirates, Saudi Arabia and the United Kingdom. The Group’s assets are capable of serving clients’ requirements across the globe, including the Middle East, South East Asia, West Africa and Europe.
GMS has an ongoing new build programme which will increase the fleet size by 66% to 15 vessels during the period 2014 to the end of 2016, in response to continued strong customer demand and an anticipated growing market in the foreseeable future.
The Group’s SESV fleet, currently comprising ten vessels, is technically advanced and amongst the youngest in the industry, with an average age of eight years.
The SESVs are four-legged vessels that move independently, with no requirement for anchor handling or tug support. They have a large deck space, crane capacity and accommodation facilities that can be adapted to the requirements of the Group’s clients.
These vessels support GMS’ clients in a broad range of offshore oil and gas platform refurbishment and maintenance activities, well intervention work and offshore wind turbine maintenance work (which are Opex-led activities) and offshore oil and gas platform installation and offshore wind turbine installation (which are Capex-led activities).
The fleet is categorised by size into Large Class vessels (operating in water depth of up to 80m, with crane capacity of up to 400 tonnes and accommodation for up to 300 people) and Small Class vessels (operating in water depth of up to 45m, with crane capacity of up to 45 tonnes and accommodation for up to 300 people). A third class, the Mid-Size Class vessels (operating in water depth up to 55m, with crane capacity of up to 150 tonnes and accommodation for up to 300 people) will be added to the fleet in 2015.
Demand for GMS’ vessels is predominantly driven by their premium capabilities as well as market growth underpinned by the need to maintain ageing oil and gas infrastructure and increasing use of enhanced oil recovery techniques to offset declining production profiles.