Mermaid Maritime buys two drilling rigs and a support vessel from China Merchants

13 January 2014 (Last Updated January 13th, 2014 18:30)

Thailand-based subsea and drilling services provider Mermaid Maritime has signed a deal with China Merchants Industry Holdings (CMIH) to buy two new-build tender rigs and one new-build dive support vessel for $436m.

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Thailand-based subsea and drilling services provider Mermaid Maritime has signed a deal with China Merchants Industry Holdings (CMIH) to buy two new-build tender rigs and one new-build dive support vessel for $436m.

The move is to meet the growing demand among consumers and drive Mermaid’s subsea engineering and drilling capabilities.

Each of the tender assist rigs will cost $149m and will use the National Oilwell Varco (NOV) design for enhanced safety, spare equipment and 50% more deck space, accommodating around 200 people.

The new dive support and construction vessel will cost $138m and will feature a remotely operated underwater vehicle (ROV) and a twin bell saturation system, which will allow it to perform subsea support activities such as survey support, ROV support, diving support and subsea maintenance.

Mermaid CEO Chalermchai Mahagitsiri said their two drilling rigs, MTR-1 and MTR-2, are nearing the latter portion of their useful lives.

"The two state-of-the-art tender rigs we have ordered will enable us to operate at a higher level during a time in which customer preferences and hence day rates continue to favour newer equipment," Mahagitsiri said.

"The newly-ordered dive support vessel meanwhile will be Mermaid’s fourth such asset, adding to a fleet high in demand by oil majors in the Middle East and Asia. The three existing dive support vessels are currently working in Indonesia, the North Sea and the Gulf of Thailand."

Mermaid is expected to finance the purchase through its recently completed $176m rights offering and loans.

The two drilling rigs will be delivered in the first and second quarters of 2016, respectively, while the dive support vessel will be delivered in the third quarter of 2016.

CMIH CEO Zhu Guiming said the three orders represent the collaborative process that began between the two companies in 2013 and will conclude with the delivery of all three vessels in 2016.


Image: The dive support vessel will be built for $138m. Credit: courtesy of Mermaid Maritime Public Company Limited.