Mermaid wins 7 subsea gigs, delays newbuilds

May 27, 2016

Mermaid Maritime’s Western Hemisphere business unit (MSSW) has been awarded seven different subsea projects in the Middle East with an estimated value of US$11 million. In addition, Mermaid has also secured extensions for three newbuild deliveries with a Chinese builder that will allow the company to align with its strategic initiatives due to the market conditions.

The Mermaid Endurer, from Mermaid.

The various work scopes include subsea survey, inspection, repair and maintenance (IMR) as well as light construction. The jobs will be performed in various offshore areas of Qatar and in the Kingdom of Saudi Arabia such as Manifa, Safaniya, Zuluf and Tanajib. Most projects will be completed by the end of August 2016.

In particular, Mermaid’s DP2 dive support vessel Mermaid Endurer has started working in Qatar on a light construction intervention with an estimated working period of circa 100 days commencing from 8 May 2016.

Mermaid Endurer is the pride of the fleet of Mermaid, and we are pleased to have the ship deployed once again here in Qatar,” Chalermchai Mahagitsiri, Mermaid CEO said. “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’s Eastern Hemisphere business unit (MSSE) has also been awarded a one-year extension of its subsea construction support services contract with a major engineering, procurement, construction, installation and commissioning (EPCIC) contractor in Thailand serving a major international upstream oil and gas operator. The current existing contract was originally awarded for a two-year campaign ending in December 2016. The term extension expands work service to 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 scope for the one-year contract extension for 2017 will be similar to previous years although the duration has yet to be determined. The work will be completed using MERMA the DP2 dive support vessel Mermaid Commander along with diving systems, plus associated equipment and specialist personnel.

This marks the 12th consecutive year Mermaid has been awarded the work. The contract term has been extended for one more year to the end of December 2017.

Mermaid’s associate company Asia Offshore Drilling Ltd. (AOD) has secured a three-month interim contract extension for its jackup rig AOD I. The unit is now committed until July 2016 at a day rate of $125,000 effective from January 2016. The contracts for jackups AOD II and AOD III are still due to expire in July 2016 and October 2016 respectively, but with a day rate of $125,000 in effect from January 2016.

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 extension options. 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 commencement of their respective drilling programs to date.

Delayed newbuilds

Mermaid has secured the delay of two performance class tender rigs, the MTR-3 and MTR-4, and one DP2 dive support and construction vessel the Mermaid Ausana with China Merchants Industry Holdings.

Pursuant to the construction contracts that were entered into with respect to the above, the vessels are all scheduled for delivery by the China Merchant at various periods in 2016.

Due to the co-operative relationship between the Mermaid and China Merchant, the parties have mutually agreed to postpone the delivery dates for both rigs to 31 December 2016 and for the vessel to 30 June 2017.

Due to this deal, Mermaid has aligned its strategic initiatives with market conditions through extended time to consider and implement preferred courses of action for the application of these assets. This includes accepting delivery of one or more of these assets from China Merchant on or before the respective delivery dates, or sale and disposal of the same to interested third parties.

The MTR-3 and MTR-4 are performance class tender assist drilling rigs. The rigs will each be equipped with a modern drilling package supplied by leading drilling equipment specialist National Oilwell Varco (NOV). Compared to other tender rigs, these rigs will feature larger deck space, bigger cranes, faster rig moves, larger and more living quarter capacity, larger tank storage and offline activity systems. The rigs will be able to operate in water depths of up to 243m with conventional mooring and 914m with pre-laid mooring. They will each also have a drilling depth rating of 7620m and accommodation for 200 personnel.

The Mermaid Ausana is a DP2 multipurpose subsea dive support and construction vessel that will be equipped with an 18-man twin bell saturation system and will have two self powered hyperbaric lifeboats. The vessel will also be equipped with diesel electric frequency controlled propulsion, highly efficient azimuth thrusters, dynamic positioning systems, offshore cranes and a large platform deck for construction duties. The Mermaid Ausana will be DNV classed, fully OGP compliant and will fly the Singapore flag.

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