ROVworld Subsea Information

Swiber secures LOA worth approx. US$75 million for the provision of underwater I
Date: Thursday, February 11, 2010 @ 09:00:00 EST

Swiber secures LOA worth approx. US$75 million for the provision of underwater IRM servicesSwiber Holdings Limited, a world class integrated construction and support services provider to the offshore oil and gas industry, today announced a Letter of Award (LOA) from a major oil company in South East Asia to provide underwater inspection, repair and maintenance (IRM) services of major offshore facilities.

The LOA, worth approximately US$75.0 million is awarded on day-rate basis and is expected to commence in Q2 2010. It will be for a 5-year period with an annual renewal option of 2 years and is Swiber's fifth win in the past month. This will bring the total contract wins for the past one month to over US$315.0 million. The contract value of US$75.0 million relates only to the first 5 year period and does not include the 2 year annual renewal option.

The Group recently secured its maiden Myanmar offshore installation project worth US$77.0 million on November 25, 2009. On December 14, 2009, Swiber announced two LOAs worth up to US$81.9 million from major oil companies in South East Asia to provide offshore support vessels. In quick succession, on December 15, 2009, it secured another LOA worth US$81.4 million to provide transportation and installation of major offshore facilities comprising of some new field developments and some decommissioning of platforms. And on December 24, 2009, it announced the extension of its contract with Brunei Shell Petroleum Sdn Bhd to provide transportation and installation of offshore structures and pipelines. The contract is to run till 2014.

Said Mr Raymond Goh, Executive Chairman and Group CEO of Swiber: "This latest win is an endorsement of our strong expertise and capability in providing fully integrated service offerings to major oil players. We expanded our diving division through our subsidiary, Kreuz Subsea, and we now have one of the largest team of divers to provide subsea diving services. This is reflective of our commitment to further strengthen our in-house capabilities and reduce reliance on third-party contractors."

Kreuz Subsea is a contractor member of the International Marine Contractors Association ("IMCA"), the international trade association representing offshore, marine and underwater engineering companies. IMCA is recognized as the standard provider by all major oil companies.

As at December 2009, Swiber operates a modern and sophisticated fleet of 44 vessels comprising of 34 offshore vessels and 10 construction vessels, with 80% of its fleet younger than 4 years old. The Group continues to enhance its in-house capabilities to provide clients with fully integrated services they require to operate in the offshore oil fields. The Group expanded the diving division of its Offshore Support Services. Today, the Group has one of the largest teams of divers to provide subsea diving services in the industry.

This article comes from ROVworld Subsea Information

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