Mermaid Maritime’s joint venture company, Zamil Mermaid Offshore Services Company (ZMOS), has retained a long-term offshore inspection, repair, and maintenance (IRM) services contract with an undisclosed client where the rendering service day rates have been reduced to ensure service continuity to the end of the contract.
This reduction in rates was part of a cost reduction initiative driven by the client given the challenging business environment, Mermaid Maritime explained.
The contract, which was awarded in the fourth quarter of 2012, is for a five-year period and is scheduled to continue until the fourth quarter of 2017.
Under the contract, Mermaid provides a suite of diving services using one of its DP2 dive support vessels along with remotely operated vehicles, specialized diving equipment and divers.
Mermaid’s portion of the revised contract value for the remainder of the term is estimated to be not less than approximately USD 70 million. The contract also has a two-year extension option embedded which, if exercised by the client, could see the contract further extended until the fourth quarter of 2019, the company explained.