HNZ Group Inc. disclosed Wednesday that its wholly-owned subsidiary HNZ New Zealand Ltd. has been granted a five year extension to an existing contract for offshore oil and gas helicopter for Shell Philippines Exploration, BV (SPEX).
The deal requires HZN to provide the services of two AgustaWestland AW139 helicopters to SPEX for the Malampaya Gas Platform, which is located in the largest gas field in the Philippines. The contract replaces the original five one-year option periods at the expiry of the current deal and will take effect from August 2017 to August 2022.
HZN indicated that revenues from the extension amounted to approximately $47 million, with non-recurring costs of around $3 million in relation to transition of replacement aircraft into the contract which will occur during financial year 2016. These costs will be recovered across the term of the extension period.
“We are very pleased to continue supporting Shell’s offshore operations in the Philippines,” President and Chief Executive Officer of HNZ Group Don Wall said.
Separately, HNZ New Zealand signed an offshore oil and gas helicopter support contract with a joint venture comprising Shell Todd Oil Services Ltd., AWE Taranaki Ltd., OMV New Zealand Ltd. and and Origin Energy Resources (Kupe) Ltd., New Plymouth for helicopter services from New Plymouth in New Zealand to various offshore petroleum platforms in the country using two AgustaWestland AW139 helicopters.
The $60 million five year plus five one year option contract, commenced April 1 as HNZ began crew change helicopter services from New Plymouth. The latest deal replaces two previous contracts HZN held with the same customer group which collectively utilized three AW139 helicopters. One of the New Zealand based AW139 aircraft is expected to be redeployed for other opportunities outside the country.
"We are extremely pleased to continue serving our longstanding customers in New Zealand with a focus on continuous safety improvement,” Wall said in a separate press release.
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