12/03/2014
The Eastern Mediterranean becomes Medserv's main line of income as the company announces that its bid for an oil and gas support contract offshore Cyprus was successful.
Italian oil company, Eni, have appointed Medserv (Cyprus) Ltd to provide them with operational base support services. The contract is for three years with a possible extension for an additional two years. The value of the contract runs well into the multi-million Euro mark, making the Eastern Mediterranean presently the main source of income for the Medserv Group.
“We have focused on our expansion and diversification plans over the last 18 months and I am happy to announce that both have been achieved. This was especially important for the company given the difficult situation we faced in the aftermath of the unrest in North Africa.” said Mr Anthony Diacono, Medserv Group Chairman. “Whilst North Africa will continue to play an important role, we are happy to announce that our efforts in Cyprus are bearing fruit. Diversification is important to ensure continued success, and at the end of the day secure the benefits we promised our shareholders.”
The contract is set to commence on the 1st June 2014 and will be conducted out of the Company's new base in Larnaca. The services provided will include all logistics support to Eni and its service contractors. These will include storage of tubulars, drilling materials, warehousing, waste management, provision of specialised offshore containers and other ancillary services.
In 2013 Medserv obtained a license to operate out of the Port of Larnaca. The company was also able to successfully purchase the shares held by the former minority shareholders in the Cyprus subsidiary which have now in part been reissued to new partners. Medserv now owns 80% of Medserv (Cyprus) Ltd and Caramondiani Group hold the remaining 20% shareholding of the company.
The oil & gas industry has recently shown significant attention to the Levantine Basin as it is one of the newest exploration frontiers with giant gas potential. Eni last year signed Exploration and Production Sharing Contracts with the Ministry of Energy, Commerce, Industry and Tourism of the Republic of Cyprus for Blocks 2, 3 and 9, located in the Cypriot deep offshore portion of the Levantine basin.
Link to source: http://medservmalta.com/news-medserv-awarded-multi-million-contract-in-cyprus
