Japan’s Modec, Mitsui & Co., Marubeni Corporation and Mitsui O.S.K. Lines (MOL) have formally confirmed their participation in a long-term charter business operated by Modec for the purpose of providing the Floating Production, Storage and Offloading (FPSO) unit that will be used by Tullow Oil on the TEN development offshore Ghana.

The deal, also involving a loan agreement, has already involved Mitsui, Marubeni and MOL investing in T.E.N. Ghana MV25 B.V. (MV25), a Dutch company established by Modec to engage in FPSO leasing, operations and maintenance services.
In August this year MV25 concluded the charter agreement with Tullow Ghana Ltd., the operator of the TEN (Tweneboa, Enyenra and Ntomme) oil fields and a subsidiary of Tullow Oil. The charter contract initially runs for 10 years, with options for extensions every year thereafter for up to 10 additional years.
The loan agreement on a project finance basis was signed by the Japan Bank for International Co-operation (JBIC), Sumitomo Mitsui Banking Corporation (lead arranger), Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., ING Bank N.V., and ABN AMRO Bank N.V. This is JBIC’s first project finance for the FPSO project in Ghana.
Modec added that West Africa “has seen numerous significant discoveries of expansive offshore oil fields in recent years, thereby giving rise to expectations of fresh demand for additional FPSOs in the region”.
The TEN fields are owned by a consortium of five companies including Tullow as operator, Anadarko Petroleum and Ghana National Petroleum Company. Construction of the converted FPSO is underway and planned to be completed and deployed in 2016 in a water depth of about 1,500 m (4,921 ft).
The floater will have an oil processing capacity 80,000 b/d, a gas processing capacity of 170 MMcf/d, and oil storage of 1.7 MMbbl.
Modec holds a 25% stake in the MV25 company, with Mitsui owning 30%, Marubeni 25% and MOL 20%.

Offshore