Medserv plc - New METS Contract & Trinidad Update

Monday, February 27th, 2017

On 27 February, Medserv plc announced that, through its wholly-owned subsidiary Middle East Tubular Services LLC (“METS”), it has been awarded a new long term contract with Sumitomo Corporation Tubular Supply Oman (“SCTSO”) for the supply chain management of Oil Country Tubular Goods to Petroleum Development Oman (“PDO”) which is a joint-venture between the Government of Oman and Shell.

The contract, which is the largest ever won by the Medserv Group, is for an initial period of five years with a five-year extension option. It also includes the provision of inspection and rig ready/rig return services which are new offerings by METS to Sumitomo.

Given the expected significant increase in business activity, METS intends to open a new facility measuring 117,000 square metres at the new port of Duqm in Oman. Indeed, the strategic objective of the Government of Oman is to establish Duqm as PDO’s logistics hub for the future. The new facility will also be able to offer the full range of Medserv logistics and engineering services from the Duqm Base.

In contrast, Medserv plc announced that it has not been successful in its first tender to offer its services in Trinidad. The Company is however awaiting adjudication on a second tender and is actively pursuing other work in Trinidad as well as the surrounding region. Furthermore, the Directors noted that further tendering opportunities are expected during 2017.

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