Wood Group PSN and Enegi sign investment agreement
Enegi Oil has announced the signing of a non-binding Memorandum of Understanding (MoU) between ABT Oil and Gas Ltd (ABTOG, the marginal field development in which it holds a 50% interest) and Wood Group PSN. The agreement defines the terms under which it is proposed that Wood Group will subscribe for a 50% shareholding in ABTOG’s engineering solutions subsidiary, Marginal Field Development Company.
Marginal Field Development Company will be renamed and further defined as an upstream energy, oil and gas technology, project management and engineering company. Its services will be dedicated to the provision of solutions that will allow the technical development of stranded and marginal hydrocarbon fields. Marginal Field Development Company will be the exclusive provider of engineering services to ABTOG projects and will not hold field equity.
Wood Group PSN will initially invest specific engineering services aimed at completion of the engineering of both of ABTOG’s proprietary solutions, the Unmanned Production Buoy and Self-Installing Floating Tower (SIFT).
Additionally, as a shareholder, Wood Group PSN will proportionally contribute to working capital and will, for projects that satisfy pre-agreed parameters, provide engineering services up to £5 million on a deferred payment basis allowing the Marginal Field Development Co. to complete FDPs for projects in which ABTOG participates.
Comments
Alan Minty, CEO of Energi
“The establishment of the Marginal Field Development Company is a logical progression from the strategic partnership which existed for 3 years. During that period, the business model has been refined and proven, projects and licenses have been acquired and it has become imperative to demonstrate that ABTOG has a 'delivery partner' for its projects. This is the purpose of establishing the Marginal Field Development Company and we are pleased to have achieved that with the investment from WGPSN.”
Dave Stewart, Wood Group PSN UK’s Managing Director
“This is an exciting new development for Wood Group PSN, aimed at maximising recovery of marginal field reserves in the UKCS, reducing running costs for operators and making previously sub-economic fields financially viable.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13062014/wood_group_and_enegi_collaborate_with_investment_agreement_826/
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