Page 10 - AsianOil Week 36

AsianOil SOUTHEAST ASIA AsianOil
Bumi Armada sells FPSO to Nigeria’s CESL
PROJECTS & COMPANIES
MALAYSIA’S Bumi Armada said last week that it had arranged to sell a floating production, storage and offloading (FPSO) unit to Century Energy Services Ltd (CESL) of Nigeria.
In a stock exchange filing, Bumi Armada stated that the Nigerian company had agreed to pay its subsidiary Armada Oyo $40mn for the FPSO, known as the Armada Perdana. CESL intends to move the vessel from its current loca- tion at the Oyo field to another offshore licence area, it noted.
The Malaysian company did not provide any further operational details about CESL’s plans. But it did report that the Nigerian firm had already paid $4.5mn towards the required deposit of $5.5mn on the FPSO and would remit the remaining $1mn before the end of 2019.
“To secure the unpaid portion of the pur- chase price, Bumi Armada will hold a mortgage over the Armada Perdana FPSO,” the stock exchange filing added. “The group will recognise the unpaid portion of the purchase price as and when funds are received from CESL.”
Bumi Armada further stated that the Nige- rian company had agreed to pay another $5mn towards the purchase price within six months of taking delivery of the FPSO, or when it began producing oil at the new site, plus another $17.9 mn within two years after reaching the milestone of first oil. Additionally, it said that the purchase price would be offset by any additional expenses incurred by the FPSO between August 1, 2019 and the date of delivery.
The Malaysian company deployed the Armada Perdana FPSO to the Oyo field in 2008.
But in June 2017 it suspended development activities, citing the Nigerian company’s failure to make regular payments for its services.
Subsequently, it did continue to allow oil to flow from production wells into the vessel and permitted the field’s operator, Erin Petroleum Nigeria, to offload a single cargo of crude. Never- theless, it had no choice but to halt work entirely in April 2018, when it received a declaration of force majeure from the Nigerian firm and was ordered to turn over all the oil extracted from Oyo and stored in the FPSO.
Several months later, Nigerian authorities informed Bumi Armada that Abuja intended to sell off all the crude contained in the vessel and had appointed a manager to oversee the trans- action. They said they would set aside a portion of the proceeds from the sale to compensate the Malaysian company for part of the sum still owed by Erin Petroleum Nigeria.™
Petronas buys SK408 gas production for Bintulu LNG
PROJECTS & COMPANIES
MALAYSIA’S state-owned Petronas has agreed to buy natural gas produced from the offshore SK408 production-sharing contract (PSC), co-operator Sapura Energy has revealed.
Under the terms of the deal, output from the Gorek, Larak and Bakong fields will be supplied to Petronas’ liquefied natural gas (LNG) complex in Bintulu, Sarawak.
Sapura owns a 50% interest in SapuraOMV Upstream, which in turn holds a 40% stake in the block. Royal Dutch Shell and Petronas each own 30% of the block through respective units Sar- awak Shell and Petronas Carigali. SapuraOMV operates the Larak and Bakong fields, while Sar- awak Shell operates Gorek.
Production from SK408’s first phase of development is anticipated before the end of the year, Sapura president and CEO Tan Sri Shahril Shamsuddin said on September 6. Produc- tion will hit 400mn cubic feet (11.33mn cubic metres) per day this year, before rising to 1 bcf (28.32 mcm) per day by 2023. SK408 has 7-10tn cubic feet (198.24-283.2 bcm) of proven and probable (2P) reserves.
SapuraOMV’s CEO, Muhammad Zamri Jusoh, said his company had a 20-year reserve life index based on current reserve estimates and production rate. He added that the field had been delivered under budget and ahead of schedule.
“We have managed to bring the field online
P10
w w w . N E W S B A S E . c o m Week 36 11•September•2019