Strategic Marine Awarded Another Repeat Order

Press Release May 2, 2011

Strategic Marine has signed another repeat order with Western Australian company Bhagwan Marine to deliver two new vessels to service the WA's offshore oil and gas industry, including the Gorgon Project.

The new contracts for a 49.5 metre and 38 metre landing craft follows the delivery of a 48 metre landing craft to join the Bhagwan Marine fleet late last year and a 27 metre work barge in March this year.

The multi-cargo vessels will operate in WA's north-west hydrocarbon province and have been designed to accommodate low incline beach landings. They will primarily be used to transfer building and construction equipment in the areas around Dampier, Onslow and Barrow Island.

Bhagwan Marine Managing Director Loui Kannikoski said he chose to engage Strategic Marine with "expectations of a very high quality build and reliable delivery time, based on past reputation".

"With Strategic Marine having infrastructure in Western Australia it also helps us with any ongoing maintenance and service requirements," Mr Kannikoski said.

"We pride ourselves on having the very best vessels, with these landing craft having an A-Class 'environmental' notation, including a 'Green Passport'. The vessels are also double bottomed to ensure the safe transport of diesel fuels and oily liquids.

"With our fleet expanding to over 45 vessels, we see it as natural to have an alliance with a company like Strategic Marine to help us keep building our business requirements, as we move into larger and more complicated vessels," he said.

Strategic Marine Executive Director Mark Schiller said the company's goal to become a key supplier in the booming Australian resource and energy sectors had now been realised.

He said the Australian-owned company had captured over AU$35 million worth of contracts in the past 18 months alone.

"The board of directors is very excited by this progress and anticipates further growth in regional market shares as more and more gas and infrastructure projects in WA and Queensland come online," Mr Schiller said.

"Australia is a key target market for Strategic Marine and we will continue to position ourselves as a competitive Australian ship building, ship repair and heavy fabrication service provider," he added.

Mr Schiller said the latest contract with Bhagwan Marine was a significant business win for Strategic Marine.

"Bhagwan's growth in the past few years has been particularly impressive and certainly an achievement we are pleased to be a part of. Both companies have taken a similar journey to get to where we are, and I'm confident the relationship will continue to grow in the years ahead."

Mr Schiller said the Bhagwan project also highlighted Strategic Marine's expanding portfolio of vessels, which has grown out of its reputation as a world leader in manufacturing high speed aluminium crew boats.

"The development of our Vietnam shipyard has enabled us to expand into steel construction and provide clients with a greater range of maritime solutions," he said.

Bhagwan Marine is a marine services provider that currently operates a fleet of modern, high performance catamarans, two 48 metre landing crafts, coastal towage tugs, multicats, crew transfer vessel and shallow water dive support vessels.

Strategic Marine is currently contracted for more than 250 vessels at its yards in Australia, Vietnam, Mexico and Singapore.