Medserv plc - New Contract in Cyprus

Wednesday, March 12th, 2014

On 12 March, Medserv plc announced that its subsidiary Medserv (Cyprus) Limited, has been awarded the contract for the provision of operational support services to ENI (Cyprus) Limited in relation to their forthcoming drilling programme offshore Cyprus. The multi-million contract is effective on 1 June 2014 and is for an initial period of three years with an option to extend for a further two years.

In a press release, Medserv provided further details explaining that through this contract the Eastern Mediterranean will become the main source of income for the Medserv Group as the oil and gas industry has recently shown significant attention to the Levantine basin. The services to ENI will be provided out of the Group’s new base in Larnaca (for which it obtained a licence in 2013) and will include the provision of storage space for tubulars, drilling materials, warehousing and waste management as well as the provision of specialised offshore containers and other ancillary services. Last year, ENI signed exploration and production sharing contracts with the Republic of Cyprus for Blocks 2, 3 and 9 located in Cyprus’s deep offshore portion of the Levantine basin.

Medserv also noted that in 2013, the Group had successfully purchased the shares held by the former minority shareholders in the Cypriot subsidiary. Subsequently, the Medserv Group re-sold 20% of the subsidiary to new partners, namely the Caramondiani Group whilst Medserv retained an 80% shareholding.

Medserv Group’s Chairman Mr Anthony Diacono explained that the investment in Cyprus has been an integral part of the Group’s expansion and diversification plans over the last 18 months. Mr Diacono explained that this development is important for Medserv especially in view of the difficult situation it faced in Libya.

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