EMAS, Ezra Sells Stake in Lewek EMAS FPSO Unit

EMAS Offshore Production Service (Vietnam) Pte. Ltd., a subsidiary of Singapore-based Ezra Holdings Ltd., has entered a share purchase agreement to sell a combined equity share of 80% in PV Keez—which owns the Lewek EMAS FPSO unit— to PetroFirst Infrastructure 2 Ltd., according to a stock exchange notice.

The vessel is currently chartered to Premier Oil Vietnam Offshore BV, the operator of the Chim Sao Field offshore southern Vietnam.

Under the terms of the agreement, EMAS Offshore is selling its 41.7% interest in PV Keez and Ezra is selling its 38.3% interest in addition to its entire stake in redeemable cumulative preference shares to PetroFirst, a joint venture between First Reserve and Petrofac.

The transaction is part of EMAS’s strategy to move away from FPSO asset ownership and instead leverage its experience in FPSO conversion, the notice said.

The deal is expected to close on or before Sept. 30.

Aibel Wins Greater Enfield Project Contract

Singapore’s Aibel Pte Ltd. has been awarded the E&P contract for modifications on Woodside Energy Ltd.’s Nguijma-Yin FPSO unit offshore Western Australia for the Greater Enfield development.

The FPSO unit will undergo modifications to the topsides, hull and turret, along with installation of a new custom waterflood module, Aibel said. The contract includes detailed marine and topsides engineering and procurement services as well as commissioning services.

The contract is scheduled to kick off in in July 2016 with targeted completion sometime in January 2019.

Development plans for Greater Enfield include producing reserves via a 31-km subsea tieback to the Ngujima-Yin FPSO facility over the Vincent oil field.

Brazil Clears Restart of FPSO OSX-3

Oil and Gas Participacoes SA said on July 1 that it has been given permission to restart production from the Tubarão Martelo Field through FPSO OSX-3 offshore Brazil.

But the company continues to monitor the process, waiting to stabilize production.

Earlier this year, Brazilian regulators approved the company’s request to temporarily stop production at the field due to unfavorable oil and gas market conditions, inconsistent well productivity projects and high operational costs for leasing.

A production update will be given July 15.

Tullow Lowers 2017 Production Target Due to Jubilee Repairs

Tullow Oil will not reach its production target of 100,000 bbl/d in 2017 after it said on June 30 it would have to shut down its Jubilee offshore field in Ghana for up to three months next year for repair work.

Technical problems at the huge field also led the oil and gas producer to cut its West Africa oil production guidance for 2016, as previously expected, by about 12,000 bbl/d to between 62,000 bbl/d and 68,000 bbl/d.

The breakdown of a piece of equipment on an offloading vessel brought production at Tullow’s prized Jubilee Field to a halt for two months earlier this year.

Additional repair work required in first-half 2017 will prevent Tullow from hitting its target of 100,000 bbl/d next year, CEO Aidan Heavey told Reuters.

He said that installed capacity to reach that level would be in place, however.

In its trading update on June 30, Tullow added that gross costs to turn the offloading vessel into a permanently spread moored facility would amount to as much as $265 million this year and $80 million in 2017. Tullow will pay one-third of the costs.

Heavey said analyst estimates for insurance payouts of about $500 million for claims relating to the repair work and loss of production were accurate.

—Staff & Reuters Reports

Offshore