GMS secures $659m backlog as Gulf liftboat deal rolls on
London-listed GMS extends small-class liftboat contract with national oil company for another year in the GCC region.
Gulf Marine Services (GMS) has secured an additional year of work for one of its small-class liftboats in the Gulf region after an unnamed national oil company exercised a contract option originally signed in 2022. The London-listed offshore vessel operator confirmed the extension without altering the existing terms, ensuring the self-propelled, self-elevating support vessel will continue its offshore maintenance operations in the GCC area.
The latest deal follows a pattern of recent contract wins for GMS. Last month, the company added 183 days of employment for another small-class vessel, along with two three-month options, under a separate agreement with a major Middle Eastern national oil company. These extensions have contributed to the company’s contracted backlog, which now stands at $659 million.
Contract details and fleet operations
The option exercised this month stems from a contract first announced on November 3, 2022. At the time, GMS had secured new agreements for one small K-class vessel, one large E-class vessel, and an extension for a mid-size unit, collectively adding 78 months of utilisation to its operations. While financial specifics such as the contract’s value, day rate, and the vessel’s name remain undisclosed, the deal underscores the company’s ongoing role in supporting offshore energy projects in the region.
GMS currently operates a fleet of 15 self-propelled, self-elevating support vessels, covering small, mid, and large classes. These assets are critical to its business model, providing essential services for offshore maintenance and logistics in the Gulf’s energy sector.
Expansion beyond the Gulf
While the Gulf remains a cornerstone of GMS’s operations, the company has begun diversifying its geographic reach. Earlier this year, it made its first forays into Africa and Latin America through vessel deployments and third-party management contracts. These moves align with broader industry trends, as offshore energy sectors in both regions experience growth.
Africa’s offshore markets, particularly in countries like Angola and Nigeria, are expanding due to increased investment in oil and gas exploration. Similarly, Latin America’s offshore industry, driven by discoveries in Brazil and Guyana, presents new opportunities for support vessel operators.
Despite these expansion efforts, the Gulf continues to be a vital market for GMS. The region’s national oil companies, known for their large-scale offshore operations, rely on specialised vessels for maintenance and support. GMS’s ability to secure contract extensions with these clients reflects its established reputation in the sector. However, the company’s long-term strategy will likely depend on balancing its core Gulf operations with its ambitions in emerging markets.
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