UAE-based jack-up services provider Gulf Marine Services has entered into a framework agreement with Zakher Marine International ("ZMI"), a privately-owned offshore services provider also based in UAE.
Both companies own fleets of self-propelled, self-elevated support units. The units are used for various offshore tasks, such as offshore oil and gas platform refurbishment and maintenance activities, well intervention work, offshore wind turbine maintenance work, as well as offshore oil and gas platform installation and decommissioning and offshore wind turbine installation.
"We have agreed to identify mutually beneficial cost-saving opportunities and improve our operational availability for the benefit of our customers using the combined scale of both self-propelled [self-propelled, self-elevated] fleets," GMS said Friday.
GMS and ZMI have agreed to establish joint teams and protocols to identify ways to pool resources, combine functions, and leverage combined purchasing power in order to reduce costs, London-listed GMS said.
The framework agreement lays out the principle areas of potential co-operation including Procurement; Logistics; Maintenance, Classification and Repair; and Employment and Training of Offshore Crew.
"Both companies operate a similar number of modern exclusively self-propelled SESV vessels, sharing many key components, allowing for multiple opportunities to leverage the combined scale in key areas to reduce third-party spend, while maintaining operational and service excellence," it said.
"Our intention is to pass a portion of the savings on to our customers whilst also strengthening our margins. This will increase our ability to compete more effectively and will underpin each business in continuing to meet the needs of all stakeholders in what remains a highly competitive marketplace. Most of the cost benefits are expected to flow through in 2021 and beyond," GMS said.
GMS and ZMI will continue to operate and compete as independent commercial entities.
Tim Summers, Executive Chairman, said: "GMS has made substantial progress on cost management over the last twelve months. Accretive gains will continue, but this strategic move offers genuinely substantive progress. Under this Agreement, we will work with ZMI to explore leveraging the combined scale of our respective supply chains, in order to lower costs and maintain higher operational availability and uptime for our customers."
"Zakher Marine International (ZMI) are a logical choice of partner for GMS as they have the only exclusively self-propelled SESV fleet that is comparable to GMS in age, size, and specification. ZMI operates in all of our key markets in the Middle East, and is headquartered, as we are, in Abu Dhabi."
News of the GMS, ZMI cooperation comes a day after Dutch company Seafox dropped its pursuit to take over GMS.