Mencast Holdings scores contract renewal with oil supermajor

It includes environmental remediation for another three years.

Mencast Holdings’ Energy Services Division recently scored a service contract renewal from an oil supermajor, according to media release by the company.

Reportedly, the contract is for environmental remediation services for another three years. It also includes the option for an extension for a further two years.

Another existing long-term contract with the oil supermajor has also been revised to include additional services and increased volumes for the remainder of its term, which expires 14 March 2018. 

Together, the two contracts are estimated to generate the Energy Services Division a revenue of about $20m over the next three years. While the contracts are expected to positively contribute to earnings per share and net tangible assets per share for the current financial year, they are not expected to exert any material impact.

The contracts have been entered into with the oil supermajor by Mencast Holdings’ 70%-held indirect Vac-Tech Engineering Pte Ltd., which is in turn a 70%-held direct subsidiary of the Mencast Energy.