Following the implementation of the agreement, MMA will have the largest petroleum support fleet in Australia, while IGL subsidiary, Total Marine Services, will remain the leading supplier of offshore oil and gas industry crews, the companies said.

The conditional agreement will see marine service supplier MMA sell its manning business to IGL for A$4.4 million. In turn, IGL will sell Total Marine Services' offshore vessels to MMA for A$23.8 million.

As part of the deal, Total Marine will supply exclusive marine manning services to the expanded fleet for seven years.

Both firms said their enhanced positions provided a strong platform to compete for the $30 billion of prospective new projects on the North West Shelf.

MMA managing director Jeffrey Weber said the transactions would create two larger and more capable companies, which would work together in the future.

“The agreement plays to the strengths of both companies in a unique exchange of assets and services,” said Weber.

“TMS will use its maritime market position to assist with any future vessel operation opportunities to MMA, and MMA will reciprocate by supporting manning opportunities for TMS."

MMA will fund its transaction through a mix of cash and debt.

Both companies said the 24 new vessels meant MMA now had Australia’s largest and most flexible oil and gas support fleet.

IGL managing director Jon Whittle said the agreement enhanced TMS’ ability to attract and retain the best personnel and provide greater employment opportunities.

“TMS and MMA will cooperate in securing future work. With each now having greater size in their specific services, the arrangements will generate operational cost efficiencies,” said Whittle.

Due diligence will begin immediately and a target date for final completion is November 30.