MMA Wins $145M Contract to Supply 2 PSVs for WA's Ichthys LNG Project

Mermaid Marine Australia Limited (MMA) referred Monday to its Feb. 25 announcement that it had received a Letter of Intent to commence detailed design for 2 Platform Supply Vessels (PSVs) which had the potential to lead to the award of a long-term material contract. MMA also advised that the award of this contract was subject to the relevant client’s internal approvals process.

The Directors of MMA are pleased to announce that this internal approvals process has now been completed and MMA has been awarded a contract for 2 PSVs for long-term production support operations with Inpex Operations Australia Pty Ltd (Inpex). MMA will operate 2 newbuild Vard 1 08 PSVs for the Inpex-operated Ichthys LNG Project with a fixed term of 5 years fixed plus 2 x 5 year options.

The PSVs will be built in Asia to Inpex's specifications, for delivery to MMA in late 2015 and early 2016 respectively. They will be operated by Australian resident crew, and will supply the Ichthys Project’s offshore facilities from Darwin and Broome.

The contract value for the firm period is $144.59 million (AUD 160 million) at today’s exchange rate, and $451.85 million (AUD 500 million) in total should all of the options be exercised.

The award of this contract further extends MMA's strategy of operating state of the art PSV vessels in both the Australian and South East Asian markets. These two newbuild vessels will complement the:

  • Recently delivered “Mermaid Leeuwin” (VARD 05L) which is contracted to Woodside Petroleum for the next 18 months with options to extend
  • “Mermaid Inscription” (MMC 887) working for Allseas Contractors Australia
  • “Mermaid Leveque” contracted to Subsea7 for 8 months; and
  • “Mermaid Vigilance” recently contracted under a Letter of Intent to operate in Malaysia for 7 months

MMA’s strategy to move into PSV operations extends its ability to service its clients’ needs through all phases of the Oil and Gas cycle from exploration, through construction to long-term production activities.

Commenting on the award, MMA’s Managing Director, Jeff Weber, said: “This contract is a major step forward for MMA. These vessels represent the state of the art for supply of chemicals to offshore production assets. We are extremely pleased to be able to work with Inpex to support the world class facilities that are being built for the Ichthys LNG Project. Production support contracts such as these are critical to our ongoing success in Australia and we look forward to delivering a safe and successful outcome to Inpex.”


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