Update Daya Materials secures North Sea contract

Update Daya Materials secures North Sea contract
Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Monday, 19 August 2013 19:19

KUALA LUMPUR (Aug 19): Daya OCI (Labuan) Limited (DOCIL), a subsidiary of DAYA MATERIALS BHD [], entered into a charter party contract with Technip Norge AS of Norway on August 16, for the provision of an offshore subsea CONSTRUCTION [] vessel together with a range of offshore services on a long-term charter basis for the North Sea and North Atlantic Regions.

The contract is for a period of 100 to 175 days per year for 7 years, until 2020.

Daya Offshore Construction Sdn. Bhd. (DOC), a wholly-owned subsidiary of Daya Materials, will be executing the charter on behalf of DOCIL.

The estimated value of the charter ranges from RM250 million to RM440 million, depending on the actual utilisation.

"The contract and the successful implementation of the charter is expected to contribute positively towards Daya Group’s earnings and net assets for the period of the charter," said Daya in a filing with Bursa Malaysia today.

"As with any offshore oil & gas projects, the charter carries operational, technical, execution, contractual and financial risks. The success of the charter is predicated on the quality of the vessel and the competence and execution capabilities of DOC’s management, engineering and project teams," it added.