S.D. Standard Drilling PSV awarded North Sea contract

Standard Supplier Standard Supplier

JANUARY 4, 2018 — Limassol, Cyprus, headquartered S.D. Standard Drilling Plc (SDSD) reports that Standard Supplier, one of its five large, wholly owned platform supply vessels (PSVs), has been awarded a one-well firm contract in the North Sea, estimated at 85 days and commencing mid-February 2018.

The charterer has the option to extend the charter with daily options at increased rates.

Standard Supplier is one of a series of ST-216 L C design PSVs delivered by what was then the Aker Brattvag shipyard in 2006 and 2007.

The commercial terms of the contract remains private and confidential but, says SDSD, "will give a positive EBITDA after management costs.

All five large PSVs wholly owned by SDSD are currently working in the North Sea as follows ;

Standard Supporter: one-well firm contract with Enquest, expected to run until mid-March 2018, including 3x1 well options at increased rates.

Standard Viking ; one year firm contract with Peterson until mid-July 2018, including 2x1 year options at increased rates.

Standard Princess ; three months firm contract with Premier Oil ending 23 January 2018, including 3x1 month options at increased rates.

Standard Provider ; one year firm contract with Maersk Oil ending 30 June 2018.

Standard Supplier ; currently working in the spot market, but on a one -well firm contract from mid-February, including daily options at increased rates.

The commercial terms of the contracts remains private and confidential but will in total give a positive EBITDA after management costs.

"The new contract for Standard Supplier further strengthens our solid contract coverage for the winter season for our wholly owned fleet of 5 large PSVs, and with a balanced mix of longer and shorter contracts we are well positioned for what seems to be an interesting spring and summer season in the North Sea. Without any debt and with a good fleet management in Fletcher Shipping we are building a fleet that is in a good position to take part in an upturn in the market we are operating in,: says Martin Nes, Chairman of the Board of Standard Drilling.

SDSD has ownership in 18 PSVs in total. Out of these, five large PSVs are wholly owned and working in the North Sea. seven mid-size vessels are partly owned through 25% ownership in DIS Opportunity III and : three are working on term contracts in the North Sea, two are held in-house (available for work on short notice) and two are in warm lay-up and actively marketed.

Through a 26% ownership stake in New World Supply ("NWS"), SDSD has part-ownership in six modern mid-size PSVs. The ownership in NWS is held as a financial asset.

"Standard Drilling will continue to look for large and modern PSVs suitable for the North Sea Market, and will also continue to distinguish ourselves from other players by being debt free and have a good cash position," says Martin Nes.

Want more? Subscribe now!

Join Marine Log's Email List

News from NASDAQ