Contract Wins

RNS Number : 8833C

Velosi Limited

08 September 2008

 



Velosi Limited

Velosi announces a MAJOR contract WIN 

in saudi arabia wiTH SAUDI ARAMCO 

and further contract wins from its specialised divisions

Velosi Limited ('Velosi' or the 'Group'), the AIM listed provider of asset integrity and HSE services to a number of major national and multinational oil and gas companies, is pleased to announce that its Saudi Arabian unit has been awarded a major five year General Inspection Services Contract with Saudi Aramco effective from July 2008 until the second quarter of 2013. 

Velosi's Saudi Arabian unit was set up as recently as late 2007, making this a break through contract win in a new region for the Company. In addition, the contract represents a significant increase in the scope of work with Aramco, one of the world's leading producers and exporters of crude oil, and producers of natural gas.

Under the new Saudi Aramco contract Velosi will provide inspection services (Quality Management Systems Services) for Saudi Aramco capital projects during the design, procurement and construction of industrial and non industrial facilities both onshore and offshore. The work will include field inspection and testing, reviewing of quality submittals, and design packages, providing inspection at supply vendors, conducting QMS audits and providing quality reports.  There is also an option for the contract to be extended for a further three years.

Velosi is also pleased to announce further contract wins by its specialised units:

Asset Integrity

Al Khafji Joint Operations ('KJO'), a joint venture between Aramco Gulf Operations and Kuwait Gulf Oil Company, has awarded a $2.2 million, two year contract to Velosi effective from April 2008. The project is an asset intergrity service which covers Reliability and Maintenance Effectiveness Implementation and is based in Saudi Arabia.  

Abu Dhabi Gas Liquefaction Company Ltd ('ADGAS') has agreed a Static Equipment Inspection and Task Planning contract with Velosi's asset integrity unit. The Abu Dhabi based contract is valued in excess of $500,000, and will last 18 months, effective from May 2008.

K2

PPL shipyard, Singapore, has awarded a contract worth $2.75 million to Velosi's subsidiary K2, for the assembly and installation of five new build jackup derricks, with the option for the contract to be extended to cover an additional three derricks.  Velosi commenced work in June 2008 and has already started the assembly of the second new build jackup, with the first five derricks due to be completed in June 2009.

In addition COSCO shipyard, Nantong, China, has awarded a $1.22 million contract to K2 for the supply of specialist equipment, manpower and technical know how to carry out the assembly and installation of the drilling package on the semi-submersible Sevan 650 drilling rig. The project commenced in July 2008 and is expected to last until December 2008.

Commenting on these contract wins Dr. Nabil Abdul Jalil, CEO of Velosi said: 'The Middle East has for some time been a highly successful region for Velosi and these wins are significant, both in terms of revenue generation and in helping to further consolidate our position in the region. Globally, demand for Velosi's asset integrity management and HSE services remains strong, reflecting the major oil and gas companies' continued emphasis on ensuring assets are safeguarded to the highest standards. We look forward to making further announcements on the Group's progress.'

- End - 

For further information, please contact:

Velosi	Dr Nabil Abdul Jalil Dan Ooi	020 7930 0777
Strand Partners	James Harris Warren Pearce	020 7409 3494
Charles Stanley Securities	Mark Taylor Freddy Crossley	020 7149 6000
Cardew Group	Tim Robertson Shan Shan Willenbrock Catherine Maitland	020 7930 0777

 

END

 

 

CNTZGGGLKKKGRZM