Neptune Marine Services Ltd (ASX: NMS) today announced that it has been awarded a major subsea inspection contract from Qatargas Operating Company Limited (Qatargas), one of Qatar's leading producers of liquefied natural gas (LNG).
The three year multi‐million dollar contract involves the inspection of Qatargas platforms, offshore pipelines and subsea connection facilities located within the Arabian Gulf.
Under the terms of the contract, Neptune will provide a dynamically positioned (DP II) vessel bundled with a range of services including ROVs, hydrographic survey, diving and pipeline stabilisation. The scope of work illustrates the intrinsic value of Neptune's ability to provide clients with specifically customised and project managed solutions.
Neptune's Managing Director and CEO, Christian Lange, said the contract represented a significant step forward in the strategic direction of the business.
"This is a major contract for Neptune and we are delighted to be partnering with Qatargas which is one of the world's leading LNG companies," he said.
"This project not only strengthens our credentials with the LNG producers; it illustrates that Neptune's growth strategy is delivering on a number of fronts.
"Firstly, it reflects our focus on building and expanding our capabilities in the areas of inspection repair & maintenance (IRM) and construction support across the major offshore provinces. "Secondly, it represents our first major project in the Middle East – a region we have identified as a growth market.
"Qatar has a strong economy in which we see significant growth potential over the longer term. Similarly, Qatargas' recent expansion plans will see it exporting 42 million tonnes of LNG by 2010, and Neptune is well placed to benefit from its relationship with Qatargas and other producers in the region.
"Thirdly, the longer term nature of this project helps Neptune build more stable and predictable revenue streams that complement our ongoing flow of shorter term projects," he added.
The project is expected to commence early in the New Year contributing further to Neptune's revenue and earnings in the second half of FY2010.