Contract and vessel update

Reference is made to press release dated 12 June 2017 regarding a Letter of Intent (“LOI”) for a project with estimated duration of four months.

As mentioned, the project would require a fleet expansion, and the DP2 subsea vessel M/V Olympic Delta, with two ROVs mobilised onboard, has been secured for execution of this project. Also note that expected start-up has been postponed from June 2017 until August 2017. Further details on this project will be released when the LOI has been converted into a final contract.

Our partner MMT Sweden AB has today announced that it has chartered the Olympic Delta on a long-term contract with the Norwegian ship owner Olympic Subsea ASA. At the same time, Reach Subsea has entered into an agreement with Delta Subsea, Houston, for hiring two WROVs already mobilized on board the vessel. This subsea spread is already at work on its first project in the Bay of Biscay, where Reach provides the ROV services. Following completion of the Bay of Biscay project, the Olympic Delta subsea spread will mobilise for start up of the four month LOI project.

Following MMT’s charter-in of the M/V Olympic Delta, Reach Subsea and MMT will co-operate on providing ROV Survey services on four subsea spreads (vessel, ROVs, and survey equipment). This includes the vessels Edda Fonn and Havila Subsea, chartered-in by Reach Subsea, and Stril Explorer and Olympic Delta, which are chartered-in by MMT. In addition, Reach and MMT will later take delivery of a second Surveyor Interceptor, our unique and revolutionary high-speed survey ROV. Through further product development we have also improved the interface between the Surveyor Interceptors and the vessels, allowing for quick and easy transfer of these survey ROVs across our combined fleet of four vessels, improving client response time and marketability of the Surveyor Interceptor.

Jostein Alendal, CEO of Reach Subsea, says: “The combination of Reach Subsea’s ROV competence and MMT’s Survey competence has proven to be powerful, and much appreciated by our clients. We are now expanding our combined service offering to our clients in a cost effective way through MMT’s charter-in of the M/V Olympic Delta, and Reach’ charter-in of the ROVs onboard. First class ROV Survey services can now be offered from four subsea spreads, with two revolutionary Surveyor Interceptors readily available on whichever of the four subsea spreads our clients prefer.”