Page 13 - AfrOil Week 09 2022

AfrOil PROJECTS & COMPANIES AfrOil

In the meantime, VAALCO is preparing to
launch field reconfiguration activities at Etame
before April, as previously scheduled. At the
same time, all of the US-based company’s engi-
neering, long-lead equipment and other signif-
icant contracts related to the Etame project are
expected to continue moving forward according
to the timeline.
The new FSO will assume the storage and
off-loading functions of the Petróleo Nautipa,
the floating production, storage and off-loading
(FPSO) unit owned by BW Offshore (Norway).
VAALCO has been using the FPSO at Etame
under a 20-year charter that expires in Septem-
ber but it is not seeking to renew. Rather, it has
arranged to hire the FSO from Omni Offshore
Terminals (Singapore).
In its statement, VAALCO explained the
decision to hire the FSO in economic terms. It
said that the simpler vessel would “reduce stor-
age and offloading costs by almost 50%, increase
effective capacity for storage by over 50% and ...
lead to an extension of the economic field life,
resulting in a corresponding increase in recov-
ery and reserves at Etame.”
The total gross cost of converting the tanker The FSO will replace the FPSO at Etame (Image: VAALCO Energy)
into an FSO is slated to reach $40-50mn, $26-
32mn net to VAALCO, the statement noted. the project a very attractive payback period of
This investment is expected to reduce the Etame less than two and a half years,” it added.
project’s operational costs by $20-25mn, $13- VAALCO serves as the operator of Etame
16mn net to VAALCO, by 2030, thereby “giving Marin and has a 58.8% stake in the block.. ™

NFE, Eni subsidiary sign HoA on Fast

LNG technology for offshore project

REPUBLIC OF CONGO US-BASED New Fortress Energy (NFE) has
arranged to make its Fast LNG technology avail-
able to a subsidiary of Italy’s Eni for use off the
coast of the Republic of Congo (RoC).
In a statement dated February 28, NFE
explained that it had signed a heads of agree-
ment (HoA) with Eni Congo, a fully-owned
subsidiary of Eni, on the use of Fast LNG over
a period of 20 years. That period would begin in
2023, when LNG production is slated to start.
According to the statement, the HoA will
serve as a framework for the negotiation of a
long-term tolling agreement for the full capacity
of an NFE liquefaction facility capable of using
associated gas from Eni’s offshore oilfields to
produce 1.4mn tonnes per year (tpy) of LNG.
The tolling agreement will also provide for NFE
to buy around 1.2mn gallons per day of LNG Marine XII holds both crude oil and associated gas (Image: NewAge)
under a 20-year FOB sales and purchase agree-
ment (SPA). RoC. However, it did indicate that discussions
NFE did not say whether it intended to use on the deal were advanced enough that they
jack-up rigs or another type of floating infra- were likely to be “completed and satisfied by the
structure to support gas liquefaction offshore end of March 2022.”

Week 09 02•March•2022 www. NEWSBASE .com P13