Speedy Hire wins $50m Middle East contract

Speedy Hire, the tools and equipment for hire business, said its international division has been awarded a 5-year $50m contract to support ESNAAD in relation to ZADCO's artificial islands project in Abu Dhabi.

Speedy said it will provide logistics, asset management and equipment rental services to support Zakum Development Company's (ZADCO) flagship UZ 750 Project at Abu Dhabi's Upper Zakum field, the fourth largest oilfield in the world.

The use of artificial islands instead of conventional offshore rigs allows the use of land-based drilling techniques to reach 70% of the field's proven reserves, the UK equipment provider said.

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"The contract, which is for an initial period of 5 years with a 2 year extension option, covers the full range of logistics, asset management and equipment rental services required to support drilling and processing activities on four artificial islands which are being constructed by ZADCO," Speedy explained.

The contract is expected to be worth in excess of $50m in revenues to Speedy over its initial term and phased mobilisation is to start shortly.

In a separate statement Speedy said trading in the new financial year had started satisfactorily and first quarter performance remains in line with management expectations.

It added that underlying revenues in the three months to 30 June 2012 gained 5.6% from the same period last year despite the quarter trading being affected by the Easter break, May bank holidays and the Queen's Jubilee.

Within the UK & Ireland Asset Services division, which constitutes over 95% of group revenues, underlying revenues rose 2.5% on last year.

The International Division enjoyed a strong start to the year, with revenues for the first quarter around 61% ahead of last year, driven mostly by continued growth in oil and gas projects across the Middle East region and in Abu Dhabi in particular.

Despite ongoing uncertainty in the construction sector Speedy said it expects to make further progress in the current financial year and remains confident that it is well positioned for the future.

CJ