Total awards Bourbon logistics contract in Namibia
Total E&P Namibia has selected Bourbon Marine & Logistics to support a deep offshore exploration campaign in South Namibia in 2020. The contract is a welcome addition for the financially struggling company which recently suspended its listing following a takeover bid.
The Namibia project scope covers the provision of a logistics base, freight forwarding, customs clearance, material storage & warehousing, handling and lifting, marine port visits support along with tank cleanings and logistics operations.
The operations will be managed out of Lüderitz, a port in the south of Namibia. According to the French offshore services provider, Namibia seems to represent great growth opportunities and many oil companies will closely watch the results of Total’s exploration project.
Bourbon will execute the contract through a local branch called Bourbon Logistics Namibia. but the company will work closely together with local partner Logistics Support Services as part of its local content strategy.
“We are extremely pleased to support Total in this new exploration project. The deployment of such integrated services contract for our number one customer prefigures a new way of sustainable cooperation”, says Grégoire Durand, VP Oil & Gas logistics of Bourbon Marine & Logistics.
“Recovery is real”
In the third quarter of 2019, Bourbon recorded slightly higher income than the same period last year, although revenues were down in comparison to the previous quarter. Total income for the quarter was EUR 177.7 million. Over the first nine months, the company reports revenues of EUR 539.3 million, which is 5% more than in 2018.
To improve the company’s balance sheet, Bourbon has initiated a fleet rationalization program. The offshore services provider currently operates a fleet of 464 vessels, compared to 498 last year. Utilization of these ships is rather low, with a rate of 53.8%.
“The market recovery is a reality, but our reactivation efforts and the maintenance of series-built vessels have impacted utilization rates and revenue”, commented CEO Gaël Bodénès.
As one of the world’s largest offshore supply vessel operators, Bourbon has been hit hard by the oil price collapse in 2014. The company is currently involved in a large-scale reorganisation to cut costs and improve the dramatic financial results. In October, the company suspended the trade in its shares following a takeover offer from a group of French banks. These takeover talks are still ongoing.