Page 18 - LatAmOil Week 50 2020

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SERVICES estimation services. Houston Offshore Engi- Group will grant to Simmons a pre-payout roy-
neering and Wood will focus on engineering alty from revenue generated from the Tecolutla
Solstad Offshore enters optimisations. Technical support for fabrication block. After payout has been satisfied, a reduced
and integration planning will be provided by royalty on existing production will be payable for
into frame agreement with McDermott’s fabrication yards in Batam, Indo- the life of the field.
Under the terms of the Tranche B Letter of
nesia, and Altamira, Mexico.
ExxonMobil in Brazil umbilicals, risers and flowlines (SURF), trans- and negotiating a business agreement pursuant
McDermott is currently delivering the subsea Intent, the parties are interested in exploring
Solstad Offshore has entered into a Frame portation and installation (T&I) and pre-com- to which Simmons would provide financial and
Agreement with ExxonMobil for the provision missioning of one jacket and topsides for the service support in an amount of up to $6mn to
of supply vessel services supporting their explo- BHP Ruby Project located offshore Trinidad IFR Group to fund drilling and development
ration activities in Brazil. and Tobago. work based on the acquisition of interests in
The Frame Agreement is for three years firm, McDermott is a premier, fully-integrated additional onshore oil and gas blocks in Mexico.
and the first call off has been received for PSV provider of engineering and construction solu- The Tranche B Financing is intended to be nego-
Normand Swift for a period of three months tions to the energy industry. tiated and structured in a manner that allows the
with commencement during December 2020. McDermott International, December 10 2020 IFR Group to draw on available funds to cover
Solstad Offshore, December 15 2020 these costs.
Completion of the proposed Transactions
McDermott wins contract IFR, Tonalli Energia sign is subject to (i) completion of due diligence
documents on investment
where Simmons will conduct financial, geo-
from BHP for pre-FEED and drilling services with logical and operational due diligence and (ii)
execution of the Definitive Agreement. All par-
extension phase for Trion Simmons Edeco ties will endeavor to complete the requisite due
diligence and definitive agreements such that
Semi-Submersible FPU International Frontier Resources Corp. (IFR) within Q1-2021 in accordance with the terms of
drilling activities can commence at Tecolutla
McDermott International, Ltd today announced is pleased to announce that IFR and Tonalli Tranche A Letter of Intent.
it has been selected by BHP Petróleo Opera- Energia, a joint venture between Mexican pet- Simmons and the IFR Group will enter into a
ciones de México, S. De R.L. De C.V. (BHP) to rochemical leader Grupo Idesa and IFR, have services agreement pursuant to which Simmons
perform the preliminary Front-End Engineer- signed a Letter of Intent with Simmons Edeco, will provide drilling services from its fleet of fully
ing Design (pre-FEED) extension phase for a a Canadian based oilfield services firm and its equipped rigs, as well as other services already
Floating Production Unit (FPU) that could be financing affiliates. The investment is set out in operating in Mexico, required for the work at
installed in a water depth of approximately 8,200 two Tranches, of $1mn and up to $6mn, which Tecolutla.
feet (2,500 meters) at the Trion field, located are subject to certain conditions being met. Simmons previously provided drilling ser-
approximately 19 miles (30 kilometers) south Under the terms of the Tranche A Letter of vices to IFR’s Mexican joint venture Tonalli
of the U.S./Mexico border and approximately Intent, it is anticipated that the parties will enter Energia and has been providing onshore drill-
112 miles (180 kilometers) from the Mexican into a binding agreement, pursuant to which ing services in Mexico since 2015. As a qualified
coastline. Simmons will contribute $1mn for development operator under Mexican regulations, Tonalli
The pre-FEED extension is expected to cre- capital at Tonalli’s Tecolutla block in the state of Energia has a proven track record and is focused
ate greater value for the project by concentrating Veracruz Mexico. The estimated total capital on expanding its opportunities in the upstream
on the optimisation of the design and execution required for the TEC-12 work programme is and midstream oil and gas sector.
strategy. estimated to be $1.5mn. International Frontier Resources, December 10
“We look forward to building on our strong As consideration for the Investment, IFR 2020
relationship with BHP and Pemex with this latest
contract award for the next phase in the Trion
Project for the Semi-Submersible FPU,” said
Mark Coscio, Senior Vice President for McDer-
mott’s North, Central and South America region.
“We will work with the project to further develop
the execution plan for Trion in order to optimise
the design and pre-FEED scope for them.”
McDermott was awarded the contract for
pre-FEED services for the Trion FPU in March
2020. Its scope includes engineering tasks related
to the configuration, sizing and preliminary
analysis of the FPU, including topsides, hull, ris-
ers and mooring.
McDermott will work in close partnership
with Houston Offshore Engineering and Wood
on the Pre-FEED extension. McDermott will
lead a single, integrated team to perform pro-
ject management, execution planning and

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