Bangkok--29 Apr--Francom Asia
Mermaid Maritime Public Company Limited (Mermaid), a subsidiary of Thoresen Thai Agencies PCL and a leading subsea engineering and drilling service provider, has sealed a USD 35 million (approximately 1.1 billion Baht) financial accommodation agreement with KASIKORNBANK Public Company Limited (KBank).
Mermaid has recently enjoyed remarkable success in penetrating the Middle East market by securing significant contracts with over USD 1.2 billion in combined potential revenue from Saudi Arabian Oil Company (Saudi Aramco), the world's largest oil and gas company. The contracts are expected to support Mermaid's business recovery amid offshore oil and gas industry upturn over the next three to five years. KBank's loan will support Mermaid's planned upgrades for the M.V. Mermaid Asiana vessel in preparation for work under these contracts, plus the delivery of two jack-up rigs through additional equity subscription in Asia Offshore Drilling (AOD).
Mermaid's subsea joint venture was also awarded a five-year Inspection, Repair and Maintenance (IRM) contract worth USD 530 million by Saudi Aramco in late 2012. Mermaid's share of revenue from the contract is expected to be in the range of 60 to 70%. Under this contract, Mermaid will relocate the M.V. Mermaid Asiana to Saudi Arabia, complete with new upgrades and equipment for enhanced performance.
Part of the loan will provide Mermaid with extra financial support to subscribe for additional equity in AOD. With 20 million new shares issued at USD 5 per share, AOD is raising USD 100 million in additional capital to fund the completion of its second and third jack-up rigs. All three rigs have been hired by Saudi Aramco service contracts that may yield close to USD 700 million in potential revenue over three years. AOD has already taken delivery of the first two rigs, both of which have been dispatched to Saudi Arabia to commence work by the end of June. The third rig is due for delivery in July 2013.
Shown in photo: Mr. Chalermchai Mahagitsiri (3rd right), Mermaid’s Chief Executive Officer, was joined by Mr. Chia Wan Huat Joseph (2nd right), Director, and Ms. Siriwan Chamnannarongsak (far right), Chief Financial Officer, in the signing of a loan facility contract with KASIKORNBANK’s First Senior Vice President Mr. Nopadej Karnasuta (3rd left), Senior Director Mr. Surat Leelataviwat (2nd left), and Corporate Client Relationship Manager Mr. Ukrit Archapairoj (far left)
About Mermaid:
Mermaid Maritime Public Company Limited ("Mermaid") is a leading provider of subsea engineering 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. It is recognised for its supportive client-focused approach, high quality service delivery and record of safety and efficiency. Its subsea division is represented by Mermaid Offshore Services, Subtech, and Seascape Surveys, which operates as a unified structured unit across many arenas 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 ("DSV"), 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 services 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. This wing has three (3) high specification jack-up drilling rigs that are being delivered in 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
About Asia Offshore Drilling Ltd
Asia Offshore Drilling Ltd ("AOD") was established by Mermaid in 2010, with the aim of owning and operating a fleet of modern high specification jack-up rigs. As of today, the Company has three wholly-owned subsidiaries, Asia Offshore Rig 1 Limited ("AOR1"), Asia Offshore Rig 2 Limited ("AOR2"), and Asia Offshore Rig 3 Limited ("AOR3"). AOD is listed in Norway on the Oslo Stock Exchange and has taken delivery of its first jack-up rig in February 2013 and the second in April 2013. The third rig is due for delivery in July 2013. For more information, please visit www.aodrilling.com.