Medserv's bid for an oil and gas support contract offshore Cyprus has been  successful, the company said this morning.

It said the contract means that the Eastern Mediterranean is currently the company’s main line of income.

Through the three-year contract, Medserv (Cyprus) Ltd will be providing Italian oil company, Eni, with operational base support services. The multi-million euro contract may be extended for an additional two years.

“We have focused on our expansion and diversification plans over the last 18 months and I am happy to announce that both have been achieved. This was especially important for the company given the difficult situation we faced in the aftermath of the unrest in North Africa,” Anthony Diacono, Medserv Group Chairman said.

“Whilst North Africa will continue to play an important role, we are happy to announce that our efforts in Cyprus are bearing fruit. Diversification is important to ensure continued success, and at the end of the day secure the benefits we promised our shareholders.”

The contract is set to commence on June 1 and will be conducted out of the company's new base in Larnaca. The services provided will include all logistics support to Eni and its service contractors. These will include storage of tubulars, drilling materials, warehousing, waste management, provision of specialised offshore containers and other ancillary services.

In 2013 Medserv obtained a license to operate out of the Port of Larnaca. The company was also able to successfully purchase the shares held by the former minority shareholders in the Cyprus subsidiary which have now in part been reissued to new partners. Medserv now owns 80 per cent of Medserv (Cyprus) Ltd and Caramondiani Group hold the remaining 20 per cent shareholding of the company.

The oil & gas industry has recently shown significant attention to the Levantine Basin as it is one of the newest exploration frontiers with giant gas potential. Eni last year signed Exploration and Production Sharing Contracts with the Ministry of Energy, Commerce, Industry and Tourism of the Republic of Cyprus for Blocks 2, 3 and 9, located in the Cypriot deep offshore portion of the Levantine basin.