Miclyn Secures Significant Vessel Contract as subcontractor to Subsea 7

By 23 August, 2013Announcements

Miclyn Express Offshore (ASX:MIO) (“MEO” or the “Company”) is pleased to announce that its subsidiaries Express Offshore Solutions Pte Ltd (“EOS”) and Samson Express Offshore Pty Ltd (“Samson”) have been awarded a significant vessel contract by Mermaid Marine Australia Limited (“MMA”) to provide tug and barge support for the Subsea 7 Heavy Lift & Tie-in Scope on the Chevron-operated Gorgon Project.

MEO will provide a fleet of minimum two (2) Anchor Handling Tugs and nine (9) barges to support the subsea installation works. All vessels involved with the works will be delivering equipment to the Gorgon and Jansz-Io fields offshore Barrow Island.
The two (2) Anchor Handling Tugs, Magellan I and II, and three (3) Barges will come from MEO’s fleet. The remaining Barges will be sourced from subcontractors. The three (3) MEO Barges involved in the project include the two (2) newly constructed 400 foot Balastable Barges built in MEO’s Batam Shipyard as well as a 330 x 120 foot Barge that was recently purchased.

The Barge fleet will be provided by EOS, MEO’s 70% owned project transportation business. The Anchor Handling Tugs will be operated by Samson, MEO’s Australian subsidiary, meeting all the relevant Australian manning requirements. The project will also utilise the capacity of MEO’s Batam Shipyard, ensuring that all Barges working in the project meet stringent Australian quarantine and project requirements.

The total contract value is in excess of A$28 million. The contract will commence in Q4 2013 calendar year and is due to complete in the 2014 calendar year.

Commenting on the award, MEO Chief Executive Officer, Mr Diederik De Boer, said: “We are very pleased to be involved in this important Australian offshore construction project. This is the third large scale Australian transportation project MEO has been awarded following the recent completion of the DB Schenker project for the Gorgon filed, as well as the latest award from Heerema for the Ichthys project, which will follow almost immediately after the completion of the Subsea 7 project. We are able to leverage off our project execution expertise through EOS, our Australian operating capability through Samson and our Batam Shipyard facility capabilities and knowledge to provide solutions for clients looking to transport equipment and materials from South East Asia to Australia. We are committed to delivering on our work-scope in a safe manner as well as supporting numerous local opportunities.”

The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).

Delivering Operational Excellence