KS Energy has announced the contract extensions for the accommodation jackup rigs, the Atlantic Rotterdam and the management contract for the Safe Esbjerg for operation in the North Sea to Maersk. The contract for the Atlantic Rotterdam has been extended from March 2009 to March 2010 with improved day rates, bringing the firm contract value to approximately S$38.2 million (€19.9 million). This contract also has two one-year optional contract extensions, giving it the possibility of being extended into March 2012. Including the optional periods, the cumulative value of this contract is approximately S$115.9 million (€60.4 million).
Maersk is a company owned by A.P. Moller–Maersk A/S and part of the A.P. Moller–Maersk Group. Maersk is a large oilfield operator with substantial concession licenses and fixed offshore installation assets for exploration and exploitation of hydrocarbons in Denmark.
The management contract with Consafe for the Safe Esbjerg has also been extended for two years for work in offshore Denmark to Maersk.
This contract extension covers the period from end June 2009 to end June 2011 with a value of S$25.2 million (€13.1 million). The value of the optional one-year contract extension to June 2012 is S$13.2 million (€6.9 million).
Consafe is a wholly-owned subsidiary of Prosafe SE. Prosafe SE is the world's leading owner and operator of offshore accommodation/services units, owning eleven accommodation semisubmersibles and one jackup rig.
These two contracts will be managed and executed by KS Energy's wholly-owned subsidiary, Atlantic Marine Services BV, operating from Amsterdam and Esbjerg. These contracts are not expected to have any material effect on the earnings per share and net tangible assets per share of the Company for the financial year ending December 31, 2008.
None of the directors or substantial shareholders of the Company has any interest, direct or indirect on the abovementioned transactions.
Commenting on the contract renewals from Maersk, Kris Wiluan, Chairman and CEO of KS Energy, said, "The operation and management of two offshore jackup units in the North Sea will enable KS Energy to continue strengthening its capabilities in the offshore oilfield support sector; it also reiterates the Company's ability to conform to the high and stringent standards demanded by the harsh environment in the North Sea market."
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