Reach Subsea and MMT have established a Joint Venture agreement primarily for survey services, as the two parties have performed a charter restructuring arrangement, in order to achieve more flexibility to the business model and strengthen the companies’ combined market reach.
Included in the Joint Venture agreement is the shared commitment of the two survey vessels, Edda Fonn on charter to Reach until December 2017 and Stril Explorer on charter to MMT until April 2016.
The two vessels will now be operated in a pool arrangement where risk and reward will be shared 50/50 between Reach and MMT. According to the agreement, in case of not renewing the charter on Stril Explorer beyond the current period, Reach will consequently have a reduced charter commitment of approximately NOK 70 million ($8.925M), which be re-invested by adding vessel capacity to the pool with MMT, Reach says.
CEO of Reach Subsea, Jostein Alendal, said: “The co-operation between Reach and MMT on development and operation of the Surveyor Interceptor, our high-speed survey ROV, has worked out very well. While Reach derives the majority of its revenues from the Oil & Gas sector, MMT has the majority of its revenues from clients in the renewable and telecom sectors. Thus, the two companies are highly complementary on the client side, which both parties stand to mutually benefit from.”
CEO of MMT, Stefan Eliasson said: “The co-operation will strengthen our strategy to become a major player within oil and gas and be a step forward for further marketing our excellent methods and technology in the market. Together with Reach we can offer high standard technology and cost effective services which is aligned with our Clients expectations.”