Following on from the Q3 trading update, Medserv PLC (MT:MDS) has announced the renewal of the second core contract from ENI (MI:ENI) for the Malta base. It has now won both contracts let in Malta for Libya operations this year. The company has thus secured its core business for the Malta base from 2017 to 2019. New opportunities in the eastern Mediterranean and resumption of drilling offshore Portugal, together with growth of METS in the Middle East, should support growth in FY17.
Medserv has won the second contract from ENI that has been let in Malta this year. Medserv’s base in the Malta Freeport in Marsaxlokk has been awarded a one-year contract by ENI North Africa to support both its offshore and onshore Libya exploration operations. Commencing at the start of next year, there is a potential one-year extension should it be required. We suspect the relatively short length and structure of the contract may to some degree be a reflection of the expectation that a return to onshore operation in Libya itself is an increasing possibility by the IOC. Medserv commented that it has worked up a plan to return to the country when the political situation allows.
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