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Mermaid, Vard announce deals, following Swiber's shocking wind-up move

TWO Singapore oil-and-gas companies on Friday announced deals ahead of morning trading, following the shocking move by their peer Swiber Holdings to wind up the company.

Mermaid Maritime announced its associate Asia Offshore Drilling (AOD) has secured a three-year contract extension from Saudi Aramco for the jack-up drilling rigs AOD I and AOD II, expiring in June 2019 and July 2019 respectively. The extensions will add about US$225 million in contract backlog.

"These units have been working for Saudi Aramco since 2013 and Mermaid is pleased that AOD continue its long-term relationship with Saudi Aramco."

Mermaid said AOD's third jack-up rig, AOD III, continues to work with Saudi Aramco and its initial three-year contract is due to expire in October 2016. Negotiations for a contract extension are still ongoing.

Shipbuilder Vard Holdings also said it has secured a US$70 million contract for the design and construction of three vessels for an undisclosed client. The announcement did not give further details.