Gulf Marine Services Regulatory News (GMS)

For Immediate Release 09 December 2014

Gulf Marine Services PLC

("Gulf Marine Services", "GMS", "the Company" or "the Group")

GMS ANNOUNCES FIVE-YEAR CONTRACT AWARD

FOR FIRST NEW BUILD MID-SIZE CLASS VESSEL

Gulf Marine Services (LSE:GMS), the leading provider of advanced self-propelled self-elevating support vessels (SESV) serving the offshore oil, gas and renewable energy sectors, is pleased to announce the first contract award for its new Mid-Size Class vessel GMS Shamal.

The vessel, which is the first of its kind in the world, is currently being built at GMS' quayside facility in Abu Dhabi and is on schedule to be completed in Q2 2015 when it will proceed directly to its first charter for a national oil company in the MENA region. The contract is for five years (two years firm with three one-year options). GMS Shamal will be supporting well service work, with the day rate in line with that previously indicated for the region for this class of vessel.

This SESV is not only a new design, being the first self-propelled SESV of this Mid-Size Class to be built by GMS, it has also been adapted to suit the client's specific needs as a specialised well intervention unit. The bespoke modifications include the supply and installation of pumping equipment and gas lines, the enlargement of the onboard brine capacity and the optimisation of the crane configuration. In common with other SESVs in the GMS fleet, the vessel is capable of high deck loads and has been fitted with a multi-move, robust jacking system combined with DP II manoeuvring to ensure rapid, frequent and safe movement between offshore wellheads.

Duncan Anderson, Chief Executive Officer of GMS, said:  

"The signing of this first charter well ahead of GMS Shamal's build completion demonstrates the continued high demand for our vessels and highlights the value of our cost-effective solutions as our core, opex-focused oil and gas clients seek to extract maximum value from their offshore assets, which is increasingly relevant in the current oil price environment.

"GMS has been at the forefront of self-propelled SESV design since the 1980s. A key factor in our client's decision to charter GMS Shamal was our ability, through our integrated engineering and construction process, to make modifications during the build process without these affecting the price or delivery schedule. Through collaboration with our client, we have developed an SESV that will ensure optimum efficiency and minimum non-productive time during our client's operations, while maintaining the flexible multi-role design as part of our core strategy for high utilisation."

The Group's entire fleet of SESVs is currently chartered, supporting brownfield oil and gas recovery, well services and maintenance work in the MENA region and in North West Europe.

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Notes to Editors:

Gulf Marine Services PLC, a company listed on the London Stock Exchange, was founded in Abu Dhabi in 1977 and has become one of the leading providers of self-propelled self-elevating support vessels (SESV) in the world. The fleet serves the oil, gas and renewable energy industries from its offices in the United Arab Emirates, Saudi Arabia and the United Kingdom. The Group's assets are capable of serving clients' requirements across the globe, including the Middle East, South East Asia, West Africa and Europe.

GMS has an ongoing new build programme which will increase the fleet size by 66% to 15 vessels (including two more Mid-Size Class SESVs) during the period 2014 to the end of 2016, in response to continued strong customer demand and an anticipated growing market in the foreseeable future.

The Group's SESV fleet, currently comprising ten vessels, is technically advanced and amongst the youngest in the industry, with an average age of eight years.

The SESVs are four-legged vessels that move independently, with no requirement for anchor handling or tug support. They have a large deck space, crane capacity and accommodation facilities that can be adapted to the requirements of the Group's clients.

These vessels support GMS' clients in a broad range of offshore oil and gas platform refurbishment and maintenance activities, well intervention work and offshore wind turbine maintenance work (which are opex-led activities) and offshore oil and gas platform installation and offshore wind turbine installation (which are capex-led activities).

The fleet is categorised by size into Large Class vessels (operating in water depth of up to 80m, with crane capacity of up to 400 tonnes and accommodation for up to 300 people) and Small Class vessels (operating in water depth of up to 45m, with crane capacity of up to 45 tonnes and accommodation for up to 300 people). A third class, the Mid-Size Class vessels (operating in water depth up to 55m, with crane capacity of up to 150 tonnes and accommodation for up to 300 people) will be added to the fleet in 2015.

Demand for GMS' vessels is predominantly driven by their premium capabilities as well as market growth underpinned by the need to maintain ageing oil and gas infrastructure and increasing use of enhanced oil recovery techniques to offset declining production profiles.

www.gmsuae.com 

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