MERMAID Maritime Public Company on Tuesday said that its joint venture company, Zamil Mermaid Offshore Services Company, has retained its long-term offshore inspection, repair, and maintenance services contract "with a reputable client in the Middle East", but at reduced rates.
According to the mainboard-listed subsea and offshore drilling services company, the rendering service day rates for the contract have been reduced to ensure service continuity to the end of the contract.
This reduction in rates was "part of a cost reduction initiative" driven by the client, given the challenging business environment.
Mermaid said that its portion of the revised contract value for the remainder of the term is estimated to be "not less than approximately US$70 million".
To mitigate the reduction in rates, Mermaid has initiated a second round of cost efficiencies, centralisation and consolidation of its business in order to improve its cost base.