Highlights 1st Quarter 2012
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Accommodation unit “Haven” operated successfully with 100% uptime at Ekofisk throughout the quarter
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The Singapore Appeal Court hearing in early February related to payment demands made under Refund Guarantees, resulted in a favorable outcome for the Company, releasing approx 94 MEUR
Summary
During the 1st quarter, management continued to focus on streamlining operations and reporting procedures in close cooperation with OSM Offshore. Operations experienced some technical deficiencies that require repair or modifications which may be expected in early day operation of new units. The Company and OSM Offshore deal with these matters without interfering on services provided to ConocoPhillips. We continue to receive positive feedback from guests on “Haven” suggesting that the level of service and quality for our hotel and catering services are highly appreciated.
Close out work from the construction project also progressed well with some 90 punches closed out during the quarter and some 55 punches remaining. Further, more that 980 contracts from the construction project has so far been closed out with only 15 remaining. Close out work is expected to be completed during the summer season.
Up time and charter hire earnings during the quarter was at 100% and operation has been satisfactory. No serious incidents with personnel injury or damage to equipment were reported during the quarter.
With respect to the cancelled construction contract for the second vessel (L206), the Company’s appeal case to discharge the injunction filed by Labroy Offshore (Dubai Drydocks) and the banks, restraining banks from making payment under the Refund Guarantees, was heard by the Singapore High Court in early February. The favorable judgment, submitted by mid April, discharged the injunction and Master Marine has called for payment of 94 MEUR and expects to receive the funds shortly.
Following the demobilization of our personnel from Batam by year end 2011, Master Marine has engaged a small number of personnel who were previously members of our site team and are still located in Batam to carry out inspections on L206 on a regular basis. The purpose is to monitor the yard’s preservation of our owner furnished equipment installed on L206 or located at the yard premises. We continue to work with Dubai Drydocks to facilitate a sale of the unit including our owner furnished equipment.
The Company has one multipurpose jack up vessel converted to an accommodation unit (“Haven”) in operation under a 3 year (plus 2x1 year options) contract with ConocoPhillips at the Ekofisk field in the North Sea. In addition, the Company owns substantial owner furnished equipment installed on or specified for a second multipurpose jack up vessel of same design for which the construction contract has been cancelled.
"Haven" at Ekofisk
”Lysaker, 27 April 2012”
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