Oil services company Medserv said today that its base in the Libyan port city of Misurata does not appear to have suffered any serious damage despite the siege of the city, and it intends to resume operations there as soon as it is safe.

In a company announcement, the company explained that the uprising in Libya had caused its turnover to drop to €3,914,590 in the first six months of this year, compared to €7,201,536 in the first half of last year.

The Group registered a profit before tax of €141,137 compared to €147,753 achieved in the six month period to 30 June 2010.

Medserv explained that profit margins on some of its activities were higher than expected due to the uncertainty in Libya which when added to the introduction of strict cost controls and the revised accounting estimates of the useful life of plant and equipment, resulted in the Group approaching the level of profits before tax achieved in the comparative six-month period.

"Both the Malta base and the Libya base in Misurata have been affected by the continuing instability in Libya. On the one hand, the Malta base has benefited by being seen as a reliable and safe haven for the relocation of oil field equipment and for facilitating the repatriation of staff employed by oil companies. The Malta base was responsible for the evacuating of most of the workers situated on the oil platforms offshore Libya.

"On the other hand the Misurata base has not operated fully for some months. Having said that there is a substantial amount of equipment owned by oil companies on the base which remains undamaged and for which storage is being charged."

There are no Maltese staff in Misurata at present, but Libyan employees report for duty when possible and they have taken steps to protect the base and the company's and clients' property as best they can, Medserve said.

"The Group remains ready to restart operations in Misurata as soon as it is deemed safe to do so and when clients return.."

With regard to existing offshore oil and gas platforms, Medserv said that
these will be the first operations to restart and that these will be in the main served from the Malta base.

The Group said it is also looking forward to the restarting of the planned programme for drilling production wells in the offshore Bouri field when hostilities cease, and to the commencement of existing planned programmes of international oil companies for which Medserv already has signed contracts.

In the meantime, the Group will continue with its cost reduction programme in
order to safeguard its financial position and to ensure it is able to react speedily to any positive developments in Libya.