Recent Key Developments
2012 Financial Year to 15 December 2012
The M.V. 'Mermaid Commander' was acquired by the Company in 2005 and has worked on multiple projects since that time. As an investment, the M.V. 'Mermaid Commander' has been the star of the fleet. Throughout this period, the M.V. 'Mermaid Commander' crew have developed and maintained a tremendous safety ethos which is the envy of the industry and set a standard to which many aspire. This was a major reason why the M.V. 'Mermaid Commander' has been successful is its exemplary safety record, which it had received recognition for.
In January 2012, the Company announced that its rig 'MTR-1' has been awarded an accommodation barge contract with an international upstream oil and gas company operating in Indonesia for a term of 150 days.
In March 2012, the Company announced that its specialist DP2 vessel M.V. 'Mermaid Sapphire' had participated in the historic expedition to the Mariana Trench's lowest point, the “Challenger Deep”, which lies 6.83 miles (10.99 kilometers) below the ocean surface, by National Geographic explorer-in-residence James Cameron. Although best known for directing films such as Titanic and Avatar, Cameron is an avid explorer with 72 submersible dives to his credit and becomes the first person in history to make the 6.8-mile dive alone. The expedition is the first extensive scientific exploration in a manned submersible of the deepest spot on Earth. The M.V. 'Mermaid Sapphire' was responsible for carrying the crew and James Cameron's 'DeepSea Challenger', a high tech craft that took the famed Canadian film maker to the bottom of the Marianas Trench. Given the highly complex and risky nature of the expedition, the Company very proud to have its vessel participate in this historic event and salutes the crew onboard for the successful conclusion of the expedition.
In March 2012, the Company announced that its specialist DP2 vessel 'Mermaid Sapphire' had participated in the historic expedition to the Mariana Trench's lowest point, the “Challenger Deep”, which lies 6.83 miles (10.99 kilometers) below the ocean surface, by National Geographic explorer-in-residence James Cameron. Although best known for directing films such as Titanic and Avatar, Cameron is an avid explorer with 72 submersible dives to his credit and becomes the first person in history to make the 6.8-mile dive alone. The expedition is the first extensive scientific exploration in a manned submersible of the deepest spot on Earth. The M.V. 'Mermaid Sapphire' was responsible for carrying the crew and James Cameron's 'DeepSea Challenger', a high tech craft that took the famed Canadian film maker to the bottom of the Marianas Trench. Given the highly complex and risky nature of the expedition, the Company very proud to have its vessel participate in this historic event and salutes the crew onboard for the successful conclusion of the expedition.
In March 2012, PT Seascape Surveys Indonesia chartered-in a DP2 ROV support vessel M.V. 'Endeavour' under a two year charter. This vessel has been specially modified for Inspection, Repair and Maintenance (“IRM”) and construction support tasks but she is also capable of geophysical and geotechnical survey.
Also in March 2012, the Company announced that its wholly owned subsidiary Subtech Ltd. (“Subtech”) opened a branch office in Abu Dhabi, United Arab Emirates, thereby expanding its existing presence in the Middle East, from Qatar and Saudi Arabia, by giving Subtech the platform to bid directly for projects in the United Arab Emirates.
In April 2012, Subtech was awarded three new contracts with new and existing clients in Qatar. In the same month, the Company announced that its tender rig 'MTR-2' had achieved another 1000 consecutive days of no lost time accidents.
In May 2012, the Company announced that 'MTR-2' had secured a six month drilling contract award with its existing client to commence after the conclusion of its previous drilling contract.
In June 2012 and July 2012, following changes in the shareholding and boardroom structure of the Company's controlling shareholder, Thoresen Thai Agencies Public Company Limited (“TTA”), the Company made several changes to the Board of Directors to reflect TTA's interest in the success of Mermaid as a key part of its overall group strategy. The Company appointed Mr. Prasert Bunsumpun, an oil and gas veteran and former President and Chief Executive Officer of PTT Public Company Limited, Thailand's largest oil and gas company, as Chairman of the Board. The newly appointed Board also established an Executive Committee (“Excom”) to allow Board members to perform a more active role in the governance and management of Mermaid.
In July 2012, Mermaid acquired the remaining equity of 20% in Seascape Surveys Pte Ltd and Seascape Surveys (Thailand) Ltd from its founding shareholders to bring the consolidation to 100%.
In August 2012, the Company announced that 'MTR-1' secured a contract with an existing client, an international upstream oil and gas company for accommodation barge support services in Indonesia for a period of 5 months.
In October 2012, the Company announced that a new joint-venture company Mermaid Zamil Offshore Services LLC formed between the Company and Zamil Offshore Services Company, had secured a significant long term offshore IRM contract with a reputable client whereby the Company will provide a suite of diving services using one of its modern DP2 dive support vessels along with remotely operated vehicles, specialized diving equipment and divers. The Company's joint venture partner, a reputable offshore and marine services company, will provide other offshore services and logistics. The contract duration is for a minimum of five years plus a two-year option. The total contract value for the five year period is estimated to be approximately USD 530 million. Mermaid's potential revenue is between 60 to 70 percent of the said contract value over this period, which had already commenced.
Also in October 2012, AOD announced the award of a drilling contract with a reputable client for jack-up rig “AOR-1” for a period of three years plus a one-year option. The potential revenues for the initial three year period are approximately USD 197 million plus a USD 39.5 million mobilisation fee which includes certain upgrades, other mobilisation costs and day rate during the mobilisation period. The rig is currently under construction with KFELS in Singapore. KFELS has advised AOD that delivery of the rig is March 2013. The rig is scheduled to start operations in June 2013.
This was followed by Seadrill acquiring 12,190,858 shares of AOD. As a consequence of this additional share acquisition, Seadrill's total number of shares was 25,690,958 shares in AOD equivalent to 65.34% of all the issued shares AOD and Seadrill proceeded with the launch of a mandatory cash offer for the remaining shares in AOD whilst continuing to acquire more shares from other shareholders. Following the conclusion of the mandatory cash offer, Seadrill's total shareholdings in AOD reached 26,463,050, representing approximately 66.16% of all the issued shares in AOD. Mermaid continues to hold 33.75% of all of the issued shares in AOD.
As at 15 December 2012, the Company, through its subsidiary MDL, owns a tender rig fleet of two (2) tender rigs, the 'MTR-1' and 'MTR-2'. The Company also owns a 33.75% stake in AOD which owns a fleet of three (3) high-specification jack-ups under construction at KFELS. The Company also, through its subsidiary MOS, owns a subsea fleet of eight (8) vessels: the S.S. 'Barakuda', M.V. 'Mermaid Commander', M.V. 'Mermaid Performer', M.V. 'Mermaid Challenger' M.V. 'Mermaid Sapphire', M.V. 'Mermaid Siam', M.V. 'Mermaid Asiana' and M.V. 'Mermaid Endurer' and chartered in one (1) vessel, M.V. 'Endeavour' through PT Seascape Surveys Indonesia.