Italian oil company Eni have appointed Medserv (Cyprus) Ltd to provide them with operational base support services.
The contract is for three years with a possible extension for an additional two years.
“The value of the contract runs well into the multi-million Euro mark, making the Eastern Mediterranean presently the main source of income for the Medserv Group,” the company said.
Medserv (Cyprus) Ltd was set up in 2011 to provide logistics and support facilities for the envisaged increased activity in the oil and gas industry in the Eastern Mediterranean basin. The company has been granted licenses to operate out of the port of Larnaca in addition to a base in the port of Limassol.
“We have focused on our expansion and diversification plans over the last 18 months and I am happy to announce that both have been achieved. This was especially important for the company given the difficult situation we faced in the aftermath of the unrest in North Africa.” said Anthony Diacono, Medserv Group Chairman. “Whilst North Africa will continue to play an important role, we are happy to announce that our efforts in Cyprus are bearing fruit. Diversification is important to ensure continued success, and at the end of the day secure the benefits we promised our shareholders.”
The contract is set to start on the 1st June 2014 and will be conducted out of the Company’s new base in Larnaca. The services provided will include all logistics support to Eni and its service contractors. These will include storage of tubulars, drilling materials, warehousing, waste management, provision of specialised offshore containers and other ancillary services.
Eni was awarded the three blocks whilst leading a consortium formed by Eni (80%, as operator) and the Korean company Kogas (20%) in an international competitive tender (Cyprus 2nd Offshore Licensing Round) which was completed in May 2012.
The oil & gas industry recently shown significant attention to the Levantine Basin as it is one of the newest exploration frontiers with giant gas potential.