Singapore: Miclyn Express Offshore Announces New Contracts

Singapore Miclyn Express Offshore Announces New Contracts

Miclyn Express Offshore (“MIO”) announces that through its Thai Joint Venture, Uniwise Offshore, it has been awarded a 3 year firm contract, plus 2 x 1 year extension options, to provide coil tubing marine support services to Chevron`s production activities in the Gulf of Thailand.

Uniwise Offshore will purchase a Platform Supply Vessel (“PSV”), currently under construction in a Chinese Shipyard, to fulfil the service requirements. The vessel will commence operation in October 2012. The new contract is a continuation of a long standing relationship with Chevron in the region.

CEO Diederik de Boer said, “This new vessel represents our sixth Offshore Service Vessel (“OSV”) servicing Chevron in the Gulf of Thailand. We have been able to leverage off our strong operating track record in Crew/Utility Vessels to further increase our exposure to Chevron’s OSV operations. We look forward to further developing our relationship with Chevron and continuing to service them with operational excellence”.

In addition, MIO announces that it has secured a 2 year firm contract with PT Seascape Surveys Indonesia for the charter of its subsea support vessel Miclyn Endeavour.

The vessel will be supporting subsea, survey, inspection and repair activities. The combined firm value of the two new contracts is US$23.8 million.

MIO also discloses that Miclyn Grace and Miclyn Grand have been withdrawn from their contracts with Saudi Aramco (announced 29 November 2011) due to issues surrounding technical suitability for their intended application.

MIO however announced that the Miclyn Grace and Miclyn Grand have been redeployed into Qatar for a 3 year firm charter, plus 2 x 1 year extension options, with HBK Power Cleaning in support of their offshore platform maintenance services in the region. The profitability of the vessels is largely unchanged under the new contracts, although some downtime was sustained as a result of the redeployment.

CEO Diederik de Boer said “The withdrawal was indeed a disappointment but MIO remains dedicated to continuing its exceptional service to Saudi Aramco for existing vessels under charter in Saudi Arabia and will pursue further expansion opportunities with this important customer. Through our extensive commercial network in the Middle East we were able to redeploy the vessels into Qatar, a region with significant growth potential, in part due to our relatively low exposure. The redeployment of these vessels has not changed our expectation that Financial Year 2012 EBITDA will be up 20-25% on Financial Year 2011”.

Subsea World News Staff , June 12, 2012;  Image: Miclyn Express Offshore