Cyprus-based oil and gas company Standard Drilling (SDSD) has been awarded new contracts for the three platform supply vessels (PSV) - Standard Princess, Standard Supplier and Standard Provider - with reputable customers.
In a stock exchange announcement, SDSD said that term contracts secure solid utilization going forward, with well known and reputable counterparties, all at increased day-rates in line with our 2019 forecast.
The total firm period of the contracts corresponds to 460-470 days. In addition, these term contracts have a combined option period of 265days.
The utilization for the five large PSVs was 100% in February and 93 % year to date 2019 including January and February, it said.
Standard Princess has received a 185-day contract, which is an extension of a contract expiring on April 1. Standard Supplier has received a 185-day contract that begins in the period between the end of March and early April. Both vessels have been given different options for around 14 weeks.
Meanwhile, Standard Provider has received a contract for 90-100 days with Ithaca. The contract starts between April 4 and May 4, and has an option for 70 days.
The commercial terms of the contracts remain private and confidential but will in total give a positive EBITDA after management costs.
"The abovementioned contracts and the rates to be paid confirm our optimism for the spring and summer season in the North Sea", says Martin Nes, Chairman of the Board of S.D Standard Drilling Plc.
SDSD has ownership in 17 platform supply vessels in total (in addition to FS Arendal that is on a 1 year BB contract that expire end of March 2019). Out of these, 5 large size PSVs are wholly owned and working in North Europe.
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