Singapore-Based EOC Bags Charter Contract for Lewek Chancellor in Africa

EOC Limited (EOC or the Group), one of Asia’s leading providers of offshore construction and production services to the oil and gas (O&G) sector, has added to its contract backlog, with a new award for the Lewek Chancellor.

Under the contract with a French oil major, the Group’s accommodation and construction barge will provide accommodation and support services for an offshore maintenance project in Africa for up to 24 months. The charter, worth approximately US$20 million, covers a primary term of eight months, with subsequent extension options for four months and thereafter, twelve months.

Mr Lim Kwee Keong, EOC’s Chief Executive Officer, said: “The Lewek Chancellor’s latest contract is testament to our growing clientele’s confidence in EOC’s outstanding offshore production and construction support services. It also underscores our unwavering efforts in seeking out new markets such as Africa for growth.

This contract also reiterates the Group’s commitment to keeping fleet utilisation high through focused measures that include tailored upgrading programmes for our vessels. Having completed retrofitting works that began in November 2010, the Lewek Chancellor now has enhanced capabilities that will allow it to take on more challenging and sophisticated projects.”

The Group expects the vessel to add to earnings starting from the fourth quarter of the current fiscal year ending August 2011 (4Q FY11). All in all, the Group should experience a boost in earnings in the second half of this fiscal year (2H FY11) as the Lewek EMAS is expected to commence production in the Chim Sao Field, off Vietnam on or about 4Q FY11, while EOC’s other vessels – the Lewek Arunothai, the Lewek Champion and the Lewek Conqueror – will all be utilised substantially during this period.