ABERDEEN oil services firm Tendeka has won a contract in Thailand that will provide a boost amid the uncertain outlook for the market.
Plans for huge Shetland oil field in question as crude price plummets to 18-year low
Tendeka has been appointed by Mubadala Petroleum to supply specialist equipment made in Scotland to help maximise production from three wells in the Gulf of Thailand.
The value of the contract was not disclosed.
However Tendeka said the three-year award would help secure its presence in the South East Asia market in the expectation it will provide a springboard for growth.
Mubadala is owned by the government of Abu Dhabi and has operations across South East Asia.
The costs of the crude price plunge must be shared fairly
The award comes at a time oil services firms are set to face big challenges.
The crude price has plunged to an 18-year low this month amid concern about the impact of the coronavirus and the start of a price war between Russia and Saudi Arabia.
Firms that operate oil and gas fields have already announced plans to slash spending in areas such as the North Sea.
Tendeka has grown its North Sea business in recent years after capitalising on the drive to maximise production from existing fields in the area. The future of the drive may be in question unless the crude price recovers.
Tendeka has won significant North Sea contracts from Aker BP and Equinor in recent months.
Asia has attracted the attention of a range of Scottish oil services firms in recent years. The region has been seen to offer better growth prospects than the mature North Sea.
Mubadala could extend the contract with Tendeka for one or two years.
It farmed out interests in licences off Indonesia to North Sea heavyweight Premier Oil in January.
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