Another big contract for shipyards

Malta Shipyards have been awarded a Lm3m contract to upgrade the Ikdam, a former tanker which the 'yard had converted into a floating production, storage and offloading facility in 2001.

The announcement comes hot on the heels of the news last week that the 'yard had landed a Lm7m contract to convert a Dutch heavy lift barge.

The new contract means the shipyard has a balanced combination of offshore and conventional work utilising available skills and resources, the company said.

The Ikdam will be returning to Malta in May for upgrading of its process facilities, dry docking and ship re-classification works.

Malta Shipyards is responsible for design engineering works, procurement, construction and commissioning. The work is due for completion in August.

"Thanks to these upgrade and conversion projects, Malta Shipyards will be quite occupied for the rest of the year, with the busiest period expected to be between May and July. Both these contracts are within the capabilities of Malta Shipyards and can be completed on time and profitably, Malta Shipyards said.

Public Investments Minister Austin Gatt told Parliament in January that Malta Shipyards achieved its turnover target of Lm18 million last year and reduced its losses as projected, but this year would be particularly challenging.

He said the beginning of this year was the best that the shipyard had seen for three years. While turnover targets were achievable this year as well, the challenge which Malta Shipyards faced was to improve the bottom line position. In order to further reduce its losses, the shipyard needed to venture into more specialised and profitable work and it needed to raise productivity so as to reduce its losses to a projected Lm4.6 million from Lm8 million last year.

The oil industry press reported earlier this year that Lundin Netherlands B.V. Succursale de Tunisie had awarded Aker Kvaerner a contract for marine operations in conjunction with deployment of the Ikdam to the Oudna field offshore Tunisia. The contract value is approximately US $14 million, about Lm5m.

This is planned for June/July with the hook-up of the Ikdam in August.