Medserv plc has continued to strengthen its expansion programme despite the difficult market conditions that have continued to prevail due to the security concerns in Libya.
“Significant progress has been registered in Libya with regards to the political situation after the successful elections of recent, although the security situation is still a concern.” said Mr Diacono, Chairman at Medserv plc.
“Libya has concentrated on resumption of production of existing facilities and oil and gas output has reached pre-war levels. However the return of International Oil Companies (IOC) to resume exploration is taking longer then expected, due to the security concerns. IOCs are now returning to Libya but with smaller budgets and fewer staff. It is obvious that they are carrying out preparatory work whilst waiting to see developments.”
In the company announcement made today, the financial results shown for the first two quarters of 2012 reflect the disappointing market conditions to date. However business is expected to pick up in the final two quarters 2012.
“It is anticipated that the offshore industry will take off before the onshore activity as security is not a threat for offshore,” says Mr Diacono. “Major oil company BP have lifted the force majeure and opened the way for exploration to commence 2013. This could be the catalyst to encourage IOCs to return to Libya and resume exploration. Medserv is well placed to participate in this activity from its base in both Malta and Libya.”
Medserv reports an optimistic outlook going forward, so much so that the company has made substantial investment in facilities and equipment to meet the increase in demand starting 2013. The company has now also finalised and signed the lease for the land for a new base in Limassol Cyprus to service the Eastern Mediterranean.