EOC Lands Pipelay Platform Installation Contract for Chevron Subsidiaries
EOC has secured a sizable pipelay and platform installation contract from new clients - Chevron Offshore (Thailand) Limited, Chevron Thailand Exploration and Production, Ltd and Chevron Pattani, Ltd - which are subsidiaries of Chevron.
The scope of work under the contract includes the installation of 11 offshore platforms and 16 subsea pipelines spanning 70 km in the Gulf of Thailand. The Group's heavy-lift accommodation pipelay vessel (the Lewek Champion) will be used for the project, which is worth approximately US $45.0 million and will keep the vessel fully utilized until August 2011. As a result, EOC expects the Lewek Champion to contribute significantly to the current financial year ending August 31, 2011 (FY11).
Mr. Lim Kwee Keong, EOC's Chief Executive Officer, said, "Our ability to secure new valuable clients despite tough competition underlines the market's recognition of EOC's growing reputation as a reliable and superior provider of offshore production and construction support services.
"Offshore O&G production and construction activity is gradually picking up and we are currently in negotiations that should heighten deployment of our technologically-advanced fleet. Backed by our track record for safety and efficiency as well as timely delivery of projects, we are confident of securing opportunities that will ensure healthy utilization of our vessels."
In late 2009, EOC clinched its largest contract ever - worth up to US $1 billion if all the options are exercised - for the provision of a
floating production, storage and offloading (FPSO) unit at Vietnam's Chim Sao oilfield, in a venture involving other industry players. The
conversion of this vessel - the Group's second FPSO - is on track and first production is scheduled for mid-2011.
The Group recently reported a net profit of US $0.6 million on a revenue of US $23.5 million for the first quarter ended November 30, 2010.