Mermaid enters amendment of drilling contract for MTR-2 rig

By Ruli Setiawan

SGX-listed Mermaid Maritime Public Company Limited said on Tuesday that it has entered into an amendment of drilling services contract made in 2013 with its client in Indonesia, an international upstream oil and gas firm, as the latter is still in the process of obtaining new permits from relevant government authorities to continue performance of the work under the contract.

Mermaid signed the contract with an undisclosed client in March of 2013 to provide drilling and related services using the tender drilling rig MTR-2.

?In the interim, the client and the company had entered into an amendment to the contract, whereby the client shall use the drilling rig as a work-over unit on a reduced rate. For illustrative purposes, assuming that the work-over period was for 30 days the potential revenue from such period is estimated to be US$ 1,260,000,? Mermaid said in a statement.

?Upon client receiving the necessary new permits, the drilling rig is planned to resume drilling operations on its normal rate on a mutually agreed date. The company will make another announcement when the drilling rig resumes drilling operations,? it added.

Editing by Reiner Simanjuntak