Bumi Armada FPSO Unit Completes First North Sea Delivery
Malaysia-based Bumi Armada Berhad’s Armada Kraken FPSO unit completed the offloading of its first cargoes in the U.K. North Sea in early September at EnQuest’s Kraken Field.
The company said that first oil was achieved on June, a little more than four months after the FPSO unit’s hookup in mid-February. Bumi Armada called it the fastest first-oil delivery on an FPSO unit in the North Sea in the last 10 years.
The vessel has experienced technical problems that have reduced its production and forced the company to lower its charter rates. Bumi Armada contended that Armada Kraken would still be profitable this year. However, AmInvestment Research, taking a conservative approach, has maintained its “hold” call for the company.
EnQuest signed an eight-year, $1.8 billion charter agreement with Bumi Armada in 2013.
Japan’s Mitsui Angles For 26% Stake In Swan’s Indian LNG Unit
As part of its effort to increase its exposure to an LNG project on India’s west coast, Mitsui OSK Lines said on Sept. 18 that it intends to purchase at least a 26% stake in an FSRU and FSU.
Mitsui, Japan’s leading shipper, has been awarded a long-term contract with Swan Energy for its $260 million, 5 mtpa vessel, under construction at Jafrabad in western Gujarat state.
“We have until year-end 2019, by when the project will be completed, to buy at least 26% in Triumph Offshore,” Senior Managing Executive Officer Takeshi Hashimoto told Reuters, referring to the Swan subsidiary that will control the $260 million FSRU.
The project is on schedule to be commissioned in first-quarter 2020. Swan LNG Private Ltd., will manage the terminal and port facilities at the project.
Hashimoto said that Mitsui will sign a deal by early next month to take an 11% stake in Swan LNG at a cost of 413 million, reducing Swan Energy’s stake to 63%. Two Gujarat state companies hold a combined 26% of Swan LNG.
Swan will charter the FSU from Mitsui OSK. The company has contracted with Korea’s Hyundai Heavy Industries to build the FSRU.
The new facilities chime with India’s push to increase the proportion of gas in its energy mix, looking to the cheaper fuel to power its economic expansion.
“Now it is a very, very good time for India to expand its LNG business. LNG prices are very attractive,” said Hashimoto.
—Staff Reports
Recommended Reading
SilverBow Saga: Investor Urges E&P to Take Kimmeridge Deal
2024-03-21 - Kimmeridge’s proposal to combine Eagle Ford players Kimmeridge Texas Gas (KTG) and SilverBow Resources is gaining support from another large investor.
CEO Darren Woods: What’s Driving Permian M&A for Exxon, Other E&Ps
2024-03-18 - Since acquiring XTO for $36 billion in 2010, Exxon Mobil has gotten better at drilling unconventional shale plays. But it needed Pioneer’s high-quality acreage to keep running in the Permian Basin, CEO Darren Woods said at CERAWeek by S&P Global.
Uinta Basin's XCL Seeks FTC OK to Buy Altamont Energy
2024-03-07 - XCL Resources is seeking approval from the Federal Trade Commission to acquire fellow Utah producer Altamont Energy LLC.
Analysts: Why Are Investors Snapping Up Gulfport Energy Stock?
2024-02-29 - Shares for Oklahoma City-based Gulfport Energy massively outperformed market peers over the past year—and analysts think the natural gas-weighted name has even more upside.
Markman: I’d Like to Not Thank the Academy…
2024-02-28 - The oil industry does not come off well in the movies and the public can miss the big picture.