MTR-2 (Mermaid Drilling Ltd.) (Tender Rig)

Mermaid Drilling's 'MTR-2' contract termination

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06 December 2014

Mermaid Maritime Public Company Limited (Mermaid) a leading provider of subsea and drilling services for the offshore oil and gas industry, would like to announce that it has received early termination of contract from its international upstream oil & gas client for the ‘MTR-2’ tender drilling rig. The initial term of the contract was set to end in May 2015 but the rig is now scheduled to be demobilized to Singapore by the end of December 2014.In a previous announcement dated 17 June 2014, Mermaid disclosed that the client was in the process of obtaining new permits from the relevant government authorities in Indonesia to continue performance of work. However, as the process in obtaining such permits by the client had been prolonged, the client had therefore elected to exercise early termination of the contract instead. The said events and early termination have all occurred through no fault of the Group. The ‘MTR-2’ tender rig, purchased by Mermaid in June 2005, has been utilized by the client for almost a decade in its Thailand and Indonesia's production fields. During its course of service, the ‘MTR-2’ has been lauded for its safety record, operational efficiency, reliability and equipment performance. The ‘MTR-2’had also received numerous awards from this client, the latest being a commendation for achieving five (5) years of no loss time incidents.

Source: http://mermaid.listedcompany.com/newsroom/20141206_223927_DU4_V85QHEON1NZTIZTY.1.pdf


More News for Operator: Mermaid Drilling Ltd.

17 Jun 2014

Reduced rate for 'MTR-2' whilst performing work-overs

Mermaid Maritime Public Company Limited (Mermaid) refers to the announcement dated 27th March 2013 in respect of the contract award to provide drilling and related services using the tender drilling rig ‘MTR-2’ for an international upstream oil and gas company in Indonesia (Chevron). Mermaid has announced that Chevron is in the process of obtaining new permits from the relevant government authorities in Indonesia to continue performance of the work under the agreed contract. In the interim, Chevron and Mermaid have entered into an Amendment to the Contract (Amendment) whereby Chevron shall use the drilling rig as a work-over unit on a reduced rate. For illustrative purposes, assuming that the work-over period was for 30 days the potential revenue from such period is estimated to be USD1.26 million. Upon Chevron receiving the necessary new permits, the drilling rig is planned to resume drilling operations on its normal rate on a mutually agreed date. Mermaid will make another announcement when the drilling rig resumes drilling operations.

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