Medserv PLC (MT:MDS) has announced the signature of a second contract for Shore Base Logistics for offshore Cyprus for an international oil company (IOC). Cyprus is a key growth driver for the company’s Integrated Logistic Support Services business. Overall, FY18 has started well for Medserv with contract wins establishing the company now in eight countries as tendering activity continues.
In our May report we mentioned that Medserv was in the advanced stages of negotiating for a tender from a second IOC for its Cyprus operations. To date, Medserv has provided services to ENI (MI:ENI) from its new Limassol base (full operation) and its storage facility in Larnaca. However, Medserv took the decision this year to consolidate its operations in Cyprus at Limassol. This second contract will require additional logistics facilities in Limassol and this investment will be met from existing resources. As we have described before, the Calypso lean gas discovery offshore Cyprus is believed to be ‘Zohr-like’; Zohr, offshore Egypt, is the largest gas field in the Mediterranean. The new find should provide an extended drilling programme, offering greater visibility and improved returns from Cyprus now from multiple customers.
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