New Asry milestone.
Manama: Asry, the leading ship and rig repair yard in the Arabian Gulf, has achieved a milestone with its 100th rig repair job.
The year 2016 also saw the highest number of rig repair contracts in the yard's history.
The project is on the high specification jack-up rig 'Bob Palmer', one of the largest jack-up rigs in the world, owned and operated by Rowan Companies, which is one of the world's leading providers of offshore contract drilling services.
"Asry's diversification into rig repair has continually proven to be one of the yard's most perceptive moves, with its revenue cycle complementing ship repair's cycle," said Asry chairman Shaikh Daij bin Salman Al Khalifa.
Asry acting chief executive Magdy Mustafa echoed the same sentiment.
"Even during market downturns, having multiple and diverse revenue streams provides more opportunities, as is being visibly demonstrated by our recent rig repair successes," he said.
"This milestone is especially encouraging considering the enormous pressure the rig market is still under," said Asry offshore services general manager Rob Bryant.
While revenues remain under pressure, the number of rig projects coming to the yard makes Asry the market leader for rig repair in 2016, with 20 already repaired by August.
Earlier in the year there were 16 rigs simultaneously in the yard, a record since the division began in 2008. However, the record number of projects is still not translating into record revenues. "Margins are very tight," Mr Bryant confirmed, "so we are working closely with our clients to meet their repair needs in the most affordable way possible, without compromising the quality and safety standards."
Asry's ability to find mutually beneficial solutions is a key factor in maintaining the long-term relationships that the yard is renowned for.
The increased movement in rig repair market comes on the heels of an uncertain 2015.
"Following the uncertainty that dominated the rig market in 2015 due to major global oil price fluctuations, Mideast rig owners and operators have a clearer understanding in 2016 of the future course for the market," Bryant explained.
"Repair scopes are still only including the essentials to meet survey requirements, but a more predictable future is relaxing the anxiety that choked the market last year."
Combined with the yard's competitive pricing and strategic location, Asry is well positioned in comparison to other rig repair outfits in the region, to capitalise on a slightly loosened market.
Asry is also pushing ahead with onshore rig work, after recently completing its first land rig refurbishment project.
A second land rig project is due in Q4 of 2016, further expanding Asry's diversified skill set.
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