Neptune Wins Maintenance Contract from Apache
In a joint marketing effort with Allied Diving Services, Neptune Marine Services has secured an oil and gas maintenance contract from Apache.
The project involves maintenance and repair of umbilical cabling used for the operation of hydraulic valves for a gas platform 2.5 kilometers off the coast of Western Australia.
Earlier this year Neptune announced its intention to acquire Allied for $2.125 million in cash and shares, and the transaction is expected to be completed shortly. In the meantime, the two businesses have been working together with the aim of securing large repair and maintenance projects that draw on the skills and capabilities of both businesses.
In the past allied would have managed the diving services component of the project, but with Neptune's support, the alliance has been able to compete for larger maintenance projects that involve vessel hire, engineering, diving, project management and surveying.
Neptune's Managing Director, Christian Lange, said this project was a direct example of how Neptune's recently announced strategy of building a fully integrated subsea IRM services company is starting to gain traction.
"Securing the Apache job gives us an early indication that the Allied acquisition supports Neptune's growth strategy."
"As a result of this initial alliance, which is in place before we complete the acquisition, we were able to gain visibility as an end-to-end provider of subsea IRM services, an to broaden our footprint on the oil and gas sector."
"Previously, neither company would have been in a position to undertake the project in its entirety. The Allied acquisition enables us to broaden our service capabilities to secure larger projects."
Allied principal, Colin Murphy said: "We are already seeing the benefits of our relationship with Neptune. Neptune has supplemented our core strengths enabling us to take on a project in which we would normally have limited involvement."
"Phase 1 of our Strategy is gaining momentum. With a mix of acquisitions and organic growth, we are well placed to achieve our growth ambitions." Mr. Lange said.
Neptune Marine Services project manages and delivers quality subsea inspection, repair and maintenance (IRM) services to the oil, gas and maritime industries. Neptune is based in Western Australia and trades on the Australian Stock Exchange under the ticker symbol NMS.
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Company: Allied Diving Services more info
- Neptune Diving Services Established (May 08)
- Neptune Wins Maintenance Contract from Apache (Jul 12)