Supply Chain & Logistics Framework Agreement

Gulf Marine Services PLC

Supply Chain & Logistics Framework Agreement

signed with Zakher Marine International to Target Operating Costs

Gulf Marine Services PLC ("GMS" or the "Company") announces that it has entered into a Framework Agreement (the "Agreement") with Zakher Marine International ("ZMI"), a leading privately-owned operator of self-propelled SESVs in the Middle East. We have agreed to identify mutually beneficial cost-saving opportunities and improve our operational availability for the benefit of our customers using the combined scale of both self-propelled SESV fleets.

The Agreement lays out the principle areas of potential co-operation, comprising:

· Procurement;

· Logistics;

· Maintenance, Classification and Repair; and

· Employment and Training of Offshore Crew.

GMS and ZMI have agreed to establish joint teams and protocols to identify ways to pool resources, combine functions, and leverage combined purchasing power in order to reduce costs.

Both companies operate a similar number of modern exclusively self-propelled SESV vessels, sharing many key components, allowing for multiple opportunities to leverage the combined scale in key areas to reduce third-party spend, while maintaining operational and service excellence.

Our intention is to pass a portion of the savings on to our customers whilst also strengthening our margins. This will increase our ability to compete more effectively and will underpin each business in continuing to meet the needs of all stakeholders in what remains a highly competitive marketplace. Most of the cost benefits are expected to flow through in 2021 and beyond.

GMS and ZMI will continue to operate and compete as independent commercial entities in accordance with applicable laws, regulations and their respective contractual obligations.

Tim Summers, Executive Chairman, said

"GMS has made substantial progress on cost management over the last twelve months. Accretive gains will continue, but this strategic move offers genuinely substantive progress. Under this Agreement we will work with ZMI to explore leveraging the combined scale of our respective supply chains, in order to lower costs and maintain higher operational availability and uptime for our customers."

Zakher Marine International (ZMI) are a logical choice of partner for GMS as they have the only exclusively self-propelled SESV fleet that is comparable to GMS in age, size and specification. ZMI operates in all of our key markets in the Middle East, and is headquartered, as we are, in Abu Dhabi.

Enquiries:

The person responsible for arranging for the release of this announcement on behalf of GMS is Tony Hunter, Company Secretary.

ABOUT GMS

GMS, a company listed on the London Stock Exchange, was founded in Abu Dhabi in 1977 and has become a world-leading provider of advanced self-propelled self-elevating support vessels (SESVs). 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 those in the Middle East, South East Asia, West Africa, North America, the Gulf of Mexico and Europe.

The GMS fleet of 13 SESVs is amongst the youngest in the industry, with an average age of eight years. The vessels support GMS's 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), as well as offshore oil and gas platform installation and decommissioning and offshore wind turbine installation (which are capex-led activities).

The SESVs are categorised by size - K-Class (Small), S-Class (Mid) and E-Class (Large) - with these capable of operating in water depths of 45m to 80m depending on leg length. The vessels are four-legged and are self-propelled, which means they do not require tugs or similar support vessels for moves between locations in the field; this makes them significantly more cost-effective and time-efficient than conventional offshore support vessels without self-propulsion. They have a large deck space, crane capacity and accommodation facilities (for up to 300 people) that can be adapted to the requirements of the Group's clients.

The Company's Legal Entity Identifier is 213800IGS2QE89SAJF77.

ABOUT ZAKHER MARINE INTERNATIONAL

Zakher Marine International provides services to the Offshore Oil and Gas Industries and Offshore Marine Construction Companies and is clearly focused on client satisfaction and retention.

The Company was established in Abu Dhabi in 1984 where the Head Office remains. ZMI currently operate over 35 offshore support vessels including 16 self-propelled SESV barges.

The management of Zakher Marine International are committed to provide safe and healthy working conditions for our employees and client personnel based on board our vessels. Our aim is to sustain safe, environmentally friendly operating practices that comply with applicable national and international codes and regulations, relevant standards, guidelines and client requirements.