Skilled buys out JV partner for $7m

Skilled Group says it will buy-out its partner in the Offshore Marine Services Alliance joint venture for $6.9 million, and plans to merge it with its Broadsword Marine operations to create a single marine services business.

Skilled said it would buy Pacific Basin Sea-Tow Holdings’ 50 per cent interest in OMSA for a price valued at half of the joint venture company’s estimated contracted net cash flows up to June 2015.

“In addition, Skilled and PB will share equally in the outcome of a small number of contingent items that are part of OMSA’s current business, including vessel demobilisations and outstanding contractual issues,” Skilled said in a statement.

The OMSA business provides tugs, barges and small vessel marine support services to Chevron’s Gorgon gas project on Barrow Island.

It has 21 vessels operating at Gorgon.

In September last year, OMSA won an extension to its contract to provide marine logistics services to the Gorgon project, from April 2014 to December 2015.

OMSA was advised that activity levels would reduce during that period as the construction phase of the Gorgon project reaches completion.

“As the Gorgon project moves from its construction to operational phase, we are pleased that OMSA’s systems, expertise and high-quality team will become a fully integrated part of Skilled,” managing director Mick McMahon said in a statement.

“Together Broadsword and OMSA have a broad operational base and extensive capabilities, with synergies to be realised from sharing resources.”

Mr McMahon said there was an attractive pipeline of opportunities in the offshore market.

Skilled’s share price closed 2.2 per cent lower at $2.19 per share.