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TTA offshore services subsidiary Mermaid wins COOEC subsea construction services contract in China Deal worth up to USD 40 million

Back Jan 28, 2013

Bangkok, Thailand, 28 January 2013 – Thoresen Thai Agencies Public Company Limited (“TTA”) announced today a key deal with a potential value of up to USD 40 million between its offshore services subsidiary, Mermaid Maritime Public Company Limited (“Mermaid”), and China Offshore Oil Engineering Co. Ltd. (“COOEC”).

The subsea services contract will be performed utilising Mermaid’s specialised DP2 Dive Support Vessel M.V. Mermaid Endurer, along with a complement of additional equipment and personnel. The Mermaid Endurer has been outfitted with the latest technological and cutting edge safety enhancements, positioning it as one of the top vessels in its class. 

The announcement follows a number of significant deals for Mermaid over the last few months. In October 2012, two Mermaid joint ventures concluded deals with Saudi Arabian Oil Company (“Saudi Aramco”), the largest oil and gas company in the world, including a USD 530 million Inspection, Repair, and Maintenance (“IRM”) contract and a USD 235.5 million drilling contract. Meanwhile in November, a Mermaid subsidiary announced a USD 25 million contract with a leading international upstream oil and gas operator, also in the Middle East.

“2013 will be the third consecutive year Mermaid works for COOEC, which is a testament to our quality of work,” said ML. Chandchutha Chandratat, TTA’s President and Chief Executive Officer. “The offshore services business is clearly in a multi-year cyclical upturn, and Mermaid’s financial performance will improve further with additional significant contracts. Today, Mermaid has the highest revenue backlog in its history, in large part because of efforts to extend its reach across both Asia and the Middle East. For TTA, Mermaid’s results are expected to drive profitability in 2013, counterbalancing a prolonged downturn in the dry bulk shipping industry.”

The contract with COOEC is scheduled to commence in March 2013 for approximately six months. Contract revenues are expected to total USD 30 million but a 60 day extension option, if exercised, would increase total potential revenues up to USD 40 million.

About TTA
Thoresen Thai Agencies Public Company Limited ("TTA") is a strategic investment holding company listed on the Stock Exchange of Thailand (TTA:TB). Its investment strategy is to grow through a balanced and diversified business portfolio of transport, energy, and infrastructure assets, both domestically and internationally. TTA's evolution away from a pure dry bulk shipping operator began in 1995 with an investment in Mermaid Maritime Public Company Limited, which has since been listed on the Singapore Stock Exchange (MMT:SP). Since then, TTA has acquired interests in fertiliser and logistics (Baconco Co., Ltd.) coal-related businesses (SKI Energy Resources Inc, Merton Group (Cyprus) Limited, and Unique Mining Services Public Company Limited), petroleum tankers (Petrolift, Inc) and a port in Southern Vietnam (Baria Joint Stock Company of Service for Import Export of Agro Forestry Products and Fertilizers). For more information, please visit www.thoresen.com

About Mermaid
Mermaid Maritime Public Company Limited (“Mermaid”) is a leading provider of subsea and drilling services for the offshore oil and gas industry. Founded by Danish mariners in 1983, the group has since developed a strong blue chip client base that includes some of the world's largest oil and gas-related companies, and is recognised for its client-supportive approach and high quality services delivered safely and efficiently. Its subsea division is represented by Mermaid Offshore Services, Subtech, and Seascape Surveys, which operates as a unified structured unit across markets offering clients a comprehensive range of subsea solutions through a highly competent technical and operations workforce operating out of Thailand, Qatar, and Indonesia. The subsea group owns and operates eight (8) subsea vessels, three (3) of which are specialised dive support vessels (DSVs), four (4) saturation diving systems and twelve (12) remotely operated vehicle (ROV) systems, all of which can be deployed to any region. The subsea group serves clients across South East Asia, India, China, the Mediterranean, and the Middle East. Mermaid's drilling division comprises Mermaid Drilling, which provides tender-assist drilling and accommodation barge services through its ownership of two (2) tender rigs, and its investment with Seadrill Ltd. in AOD, which has three (3) high specification premium jack-up drilling rigs under construction in Singapore with deliveries scheduled for 2013. Mermaid's corporate headquarters is located in Bangkok, Thailand and is listed on the Singapore Stock Exchange (MMT:SP). For more information, please visit www.mermaid-maritime.com

For further information, please contact:
Thoresen Thai Agencies Plc
Ravisada Angkeeros E-mail: ravisada_a@thoresen.com
Tel: +66 2254 8437 Ext. 393 Mobile: +6681398 5098

Or MSL Hong Kong
Eric Abelev E-mail: eric.abelev@mslgroup.com
Tel: +852 2804 8107 / +852 6355 8420