Neptune Marine Services Ltd (ASX: NMS) today announced that it has been contracted to provide a range of hydrographic survey and positioning services to a new field development project offshore Libya that is operated by one of the world's leading oil and gas producers.
Under the terms of the agreement, Neptune will provide rig and vessel positioning services for an initial three well drilling program with an option for an additional three wells. The project will be managed from Neptune's UK operation in Aberdeen.
The first three wells will be drilled over a period of approximately 10-12 months in average water depths of approximately 3900 feet (1200 metres). The activity will take place in the Pelegian Basin which is located approximately 175km east of Tripoli and 65km off the coast due north of Misurata in the Mediterranean Sea.
Neptune's Managing Director and CEO, Christian Lange, said the contract award was consistent with the company's strategy of identifying new and emerging opportunities in the burgeoning deep water sector and securing longer term projects that delivered more stable revenues.
"Our entry into North Africa is also a direct result of our focus on organically growing Neptune's offshore services capability in the UK and our strong pipeline of tendering opportunities within the European region is further evidence of that," he explained.
"As we continue to expand our unique multi-service offering across the world's key geographic regions, Neptune's reputation as a reliable provider of engineered solutions is maturing among our target industries," he added.
The contract award represents Neptune's first major foray into the North African region that ranks in the top five OPEC member states for proven reserves of light sweet crude oil. Libya is recognised as Africa's largest oil producer and is a leading (African) supplier of oil to Europe. To date the region's vast oil and gas reserves remain largely unexplored.