Mermaid, Vard announce good news, day after Swiber's fall hits market

SINGAPORE - Two Singapore-listed offshore oil & gas services companies announced good contract news on Friday morning (July 29) before trading opened, a day after Swiber Holdings' shock move to wind up the after it could not meet demands for repayment of US$25.9 million from creditor.

Swiber's shock disclosure hit the Singapore stock market on Wednesday, with banks and the oil and gas sector among the biggest casualties.

Mermaid Maritime said its associate Asia Offshore Drilling (AOD) had secured a three-year contract extension from Saudi Aramco for jack-up drilling rigs AOD I and AOD II, expiring in June 2019 and July 2019 respectively. The extensions will add about US$225 million in contract backlog.

"These units have been working for Saudi Aramco since 2013 and Mermaid is pleased that AOD continue its long term relationship with Saudi Aramco," the company said its filing to the Singapore Exchange.

AOD's third jack-up rig AOD III continues to work with Saudi Aramco and its initial three year contract is due to expire in October 2016 with negotiations for contract extension still ongoing, Mermaid added.

AOD is a joint venture between Mermaid and Seadrill Ltd. Mermaid has a 33.76 per cent equity stake in AOD, with the remainder held by Seadrill.

Separately, Vard Holdings announced it has secured a US$70 million contract for the design and construction of three vessels for an unidentified client. It did not give more details.