Monday 6 July 2015

Gulf Marine Services the leading provider of advanced self-propelled self-elevating support vessels (SESVs) serving the offshore oil, gas and renewable energy sectors, is pleased to announce that one of its Large Class vessels in Europe has been contracted for decommissioning work, a new activity for the Group.

The vessel, which has been supporting well service and maintenance work in the Southern North Sea for an international oil company since Q3 2012, was scheduled to continue that work until Q1 2016 (with a further six-month option thereafter exercisable by the client).

GMS and the client have now agreed that the vessel will move to support the client's decommissioning work, also in the Southern North Sea, in summer 2015. The revised contract has a committed term through to Q1 2016 and an option period that has been extended from six months to twelve months. The vessel will proceed directly from the current project this summer to the decommissioning work. The day rates for this charter are in line with guidance previously given for Large Class vessels.

Duncan Anderson, Chief Executive Officer at GMS, said:

"We have been targeting decommissioning work for some time and are pleased that this new project has now given GMS our first foothold in this area. The fact that we will be moving directly from one type of work to another for the same client also demonstrates the flexibility of our vessels and their value to our clients. Our ability to tailor our fleet to our clients' evolving needs, while also offering competitive solutions, is especially helpful in the current low oil price environment."

GMS has two Large Class SESVs operating in the North Sea. A further ten SESVs are contracted in the Middle East.