ABU DHABI, UAE – Gulf Marine Services has reached agreement in principle for a charter of a Large Class self-elevating support vessel (SESV) to assist offshore oil and gas maintenance in Europe.
The contract would start in mid-2017 with a duration of 18 months, plus options.
Last month the company also secured a 12-month contract for one of its mid-size vessels supporting a MENA-based NOC.
It also gained a contract extension for a Small Class vessel chartered to another MENA-based NOC. The extended period is for 12 months, with a further one-year option remaining.
However, the market outlook remains uncertain, GMS cautions, with NOCs in the Middle East seeking to implement cost saving measures to address the sustained low oil price environment.
This has involved corporate restructuring across their own businesses and demands for supply chain efficiencies, resulting in three of GMS’ contracts being terminated early, and a two-year option period on another contract not being exercised.
On the plus side, two of the company’s Large Class vessels continue on long-term contracts in the southern North Sea, and there are tender opportunities in the MENA region and Europe.
Recently the company has supplied pumping and cementing services ahead of the introduction of GMS’ new low cost cantilever concept in 2017. The company believes the concept will allow it to deliver its well intervention services more efficiently and to provide a greater range of services from its vessels.
GMS will also compete for workover activity that was previously only possible from jackup drilling rigs. A Large Class vessel with a well workover cantilever will be ready to start operations from 1Q 2017 onwards.
The SESV newbuild program, which will have increased the fleet size from nine vessels in 2014 to 15 vessels, will be complete at the end of this year, when the final vessel, the Large Class GMS Evolution is delivered.
Beyond this the newbuild team will be scaled down. Any future expansion will be on a vessel by vessel basis, driven by market demand.
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