ENTH

News

Mermaid associate company AOD takes delivery of third new-build jack-up rig

Back Jul 18, 2013

 

Bangkok, Thailand / Singapore, 18 July 2013 - Thoresen Thai Agencies Public Company Limited (“TTA”) announced today that Asia Offshore Drilling Ltd (“AOD”), an associate company of Mermaid Maritime Public Company Limited (“Mermaid”), has taken delivery of its third new-build jack-up rig, AOD III, from Singapore-based builder Keppel FELS Ltd (“Keppel FELS”). Mermaid, TTA’s oil and gas services subsidiary, founded AOD in 2010 and currently holds a 33.76% stake in the venture. Seadrill Limited (“Seadrill”), which manages AOD’s commercial operations,  owns 66.23% of the company.

AOD III will now be mobilised to the Middle East to begin its three-year contract with Saudi Arabian Oil Company (“Saudi Aramco”). AOD III and the two previously delivered rigs, AOD I and AOD II, have each signed contracts with Saudi Aramco to provide drilling services for an initial period of three years plus a one-year option.

“Mermaid made a visionary move when it founded AOD in 2010, anticipating an upturn in the oil and gas sector,” said Mr. Chalermchai Mahagitsiri, Executive Vice Chairman of TTA and Mermaid’s CEO“In getting this timing right, AOD has taken delivery of its assets in the midst of a bull market for oil exploration, allowing us to take advantage of some of the strongest day rates in recent history.” 

Earlier this month, Mermaid received approval from its shareholders to proceed with a rights issue that could raise up to SGD 176 million towards the potential purchase of additional drilling assets.

Concluded Mr. Mahagitsiri, “Mermaid will be an important revenue and income driver for TTA in the near to mid-term, particularly while the dry bulk shipping industry begins to embark on a gradual path towards recovery. As a result, TTA fully supports Mermaid’s proposed rights issue and remains confident in the company’s prospects across its key markets in Asia, the Middle East and beyond.”