ABU DHABI, UAE – Gulf Marine Services has received notice of an early contract termination for a Large Class jackup barge providing offshore accommodation for a national oil company in the Middle East North Africa (MENA) region.
The vessel is now set to come off charter during 4Q 2016.
Another client has terminated a contract for a Small Class vessel, now due to come off hire in the current quarter, while a further client has decided not to exercise a two-year option period on a separate Small Class vessel.
Duncan Anderson, CEO of GMS, said: “As previously announced, our NOC clients in the Middle East are implementing cost-saving measures in light of the current challenges facing the industry. This has involved corporate restructuring across their own businesses and the pursuit of supply chain efficiencies.
“We expect the need to sustain production will, in due course, result in the resumption of higher levels of opex activities, though the timing of this is not easy to predict…
“The European market shows greater stability, and a number of opportunities in other countries in the MENA region outside of the UAE and elsewhere are under discussion.”
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