Nigeria: Global Workboats Charters Otto Marine’s AHTS Vessel

Otto Marine Limited, offshore marine company which specializes in building complex offshore support vessels, ship chartering and offers specialized offshore services, announces that it has entered into a time charter contract for an initial value of US$ 20.8 million over 3 years, with an option to extend for a further 1 + 1 year, bringing the potential value of the contract up to US$ 35.0 million.

The 7,200 bhp AHTS with DP class 2 capabilities “Beluga 1” vessel will be operated by Global Workboats Private Limited and deployed off the coast of Nigeria, and be part of a growing fleet of vessels servicing the West African offshore market.

The vessel is currently undergoing routine maintenance at Otto Marine’s Batam shipyard.

Including “Beluga 1”, Global Workboats will have a total of 4 offshore support vessels deployed in African waters. Other 3 vessels already deployed include two 61 meters utility vessels and one 8,000 bhp AHTS.

Chief Financial Officer of Otto Marine, Mr. Michael See, commented, “We are delighted with this charter contract which is a reflection of our increasing presence in Africa and together with the recent sale of our 10,800 bhp AHTS vessel to a third party for US$31.0 million demonstrates our commitment to steadily strengthen and improve our cash position.

We will continue to work on strengthening our chartering fleet through organic growth to enhance our operating and logistics capabilities. We believe the positive synergies harnessed within our business offerings will land us in a commanding position to tap on the growth opportunities within the Asia-Pacific region and Africa.”

Managing Director of Global Workboats, a 100% owned subsidiary of Otto Marine specializing in offshore supply vessel operations, Capt. Mike Kelly, commented that “We are all very proud to be a part of the Exxon Mobil project. The Beluga 1 has been custom fitted with a 25 ton deck crane which will enable her to successfully deliver on the specific requirements for the project.”

The contract is expected to have marginal contribution to the Company’s FY 2012 earnings.