Gulf Marine Services (GMS) has entered the decommissioning market through one of its self-propelled, self-elevating, jack-up support vessels. The project, located in the southern section of the North Sea, will add six months option visibility beyond the first quarter of next year. But the move is seen as particularly encouraging for the group's long-term prospects in the region. Pulling the plug on ageing wells has become a more attractive option for producers given increased clarity on decommissioning costs, together with reworked assumptions on forward Brent crude prices.
GMS revealed that the pricing of the contract was in line with its previously provided expectations, although the Abu Dhabi-based group didn't mention the other party in the revised contract. But it is thought that the vessel - the GMS Endurance - is currently leased to US driller ConocoPhillips.
