Coastal’s wholly-owned subsidiary, Thaumas Marine Ltd has secured a charter contract for a newbuild Jack-Up Gas Compression Service Unit for an aggregate value of approximately RM1.24 billion from a group of Mexican companies.
The company has in turn entered into a gas compression service contract with Petroleos Mexicanos, the Mexican state-owned petroleum company.
The construction work will be started immediately and is expected to complete in the first half of 2015. The charter contract is for a period of eight years with extension option up to twelve years. The charter contract is expected to commence by the second half of 2015.
The charter contract valued at approximately RM1.24 billion is expected to contribute positively to the revenue stream, earnings and net assets of Coastal Group for the financial year ending 31 December 2015 and the financial periods thereafter for the duration of the charter contract.
Press Release, February 10, 2014