Medserv ventures into East African and India projects

Oil logistics company Medserv is bidding to expand further south of Libya, with an operation in East Africa in a joint venture with a European partner.

Medserv chairman Anthony Diacono said the company had been shortlisted for a logistics base award in Tanzania, which if successful would be Medserv's first operation in East Africa and a first out of the Mediterranean for the company. "The Medserv name and our bases enjoy a leading position in the Mediterranean. It is great to see that our brand is now recognised and international partners are seeking our expertise on projects outside of the Mediterranean basin."

Medserv is awaiting the results of the final award. The company has also been invited by a major UK oil company to tender for the setting-up and operation of a logistic supply base in India. "The investments made in strengthening the management team are starting to bear fruit. These operations outside the Mediterranean are a game-changer and would be a momentous milestone for the Company and our brand," Diacono said.

The company reported that the recovery in the company's turnover evidenced in the last quarter of 2012 has continued leading to a profit for the first three months of the year. Medserv started work on a second, large oil-related maintenance project which is expected to be completed within the next few months.

The preparations being made by oil companies for upcoming projects in the Mediterranean have continued and both the company's warehousing facilities in Malta as well as the open areas on the Malta base are benefitting from this activity, leading to increased income from storage and from activities on the Company's quay.

The Misurata base, whilst operational, still suffers from the lack of new business from the international oil companies who remain reluctant to return to operational activity in Libya. However, income sufficient to meet the running costs of the base is being received from equipment stored there.

The company is continuing to market its facilities and capabilities in Cyprus.

The new Italian government's commitment to fossil fuel exploration offshore Italy and Sicily is also expected to a recently set-up joint venture in Sicily as well as to the Malta base.