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Marine Log

MIS's Sharjah UAE yard

MIS's Sharjah, UAE, yard

April 4, 2007

MIS to build F&G Super M2 for new JV

Maritime Industrial Services Co. has finalized a Letter of Intent covering construction of one firm and one optional Friede & Goldman Super M2 design offshore jackup drilling rig at its Sharjah, UAE, yard.

It has received a US$5 million initial payment on the first rig.

The order was received from a newly established joint venture company involving Singapore-based KS Energy Services Ltd., with 50% equity, Amwal Al Khaleej Commercial Investment Co. Ltd. (a Saudi Arabian private equity company) with 40% equity and MIS with 10% equity.

It is expected that the formal joint venture agreement between the parties and the final building contract will be finalized in early April.

The delivery of the rig is set for 30 months from the effective date of the contract or around the third quarter of 2009.

MIS will dedicate one of the 30,000 ft National Oilwell Varco drilling packages that it ordered at the end of 2006 to the first rig to ensure the 2009. delivery date.

With this award, MIS's order backlog now exceeds US$ 400 million for the first time in its history.

MIS Managing Director stated, "this is an important order for MIS to add to the two rigs already under contract for Mosvold Jackups Ltd. It reflects the sentiment that MIS is a credible rig builder based on the progress achieved to date on the Mosvold rigs."

Smith added that "MIS sees this type of joint holding of rigs increasing in the Middle East as more and more local companies establish themselves as equity holders in offshore jack-ups in the biggest oil and gas producing market area in the world. MIS will continue to try to promote this type of venture between established chartering companies and drilling contractors with local companies holding equity."

MIS is a Panamanian registered company with its major fabrication base and shipyard in Sharjah, UAE and has approx. 3,500 employees. The company was founded in 1979 and has 28 years of profitable operating history. MIS provides integrated onshore and offshore engineering, procurement, fabrication, maintenance, construction and shipyard services including oil, gas and petrochemical processing equipment, marine, structural and new-build offshore jackup drilling rigs, site installation, construction, commissioning and shipyard services, professional, technical, operational and safety services. 2005 revenue was USD 108.8 million with net profit of USD 9.6 million Audited 2006 revenue was USD 177.4 million with net profit of USD 19.3 million MIS is listed on the Norwegian OTC market (NOTC:MISC).