08:00 Wed 19 Jun 2019
Nu-Oil and Gas PLC - MFDevCo collaboration agreement with Petrofac
("Nu-Oil" or "the Company")
Nu-Oil is pleased to note the following announcement from
Petrofac and MFDevCo join forces to maximise recovery
Under the agreement, the companies will work together to engineer, deliver and operate gas to wire facilities for the redevelopment and recovery of marginal gas fields, supporting
Petrofac, through its Engineering and Production Services business, will provide engineering support, and input to feasibility studies and opportunity screening working with MFDevCo to secure projects that will be developed and delivered using MFDevCo's gas-to-wire approach, which includes the use of technology supplied by Siemens, as announced on 12th
The approach maximises the recovery of stranded gas resources by using gas to generate electrical power on an offshore platform. Turbines installed on the platform convert the gas into electricity that can then be exported to shore in a cheaper and more efficient way than conventional methods; eliminating the expenditure, loss of value and reliance on pipeline networks.
The agreement allows for Petrofac to provide engineering and asset operations services on all gas-to-wire projects identified by MFDevCo, subject to agreeing terms on a case by case basis. It has an initial term of two years but both parties are viewing this as the basis for a long-term collaboration with benefits that will increase as working practices are cemented and efficiencies increased going forward.
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Notes
MFDevCo focuses on maximising recovery from the vast, undeveloped hydrocarbon resources contained within marginal fields worldwide, utilising appropriate re-deployable solutions to transform these undervalued assets. MFDevCo seeks to manage the entire lifecycle of marginal field projects from opportunity screening, suitability assessment and financing through engineering to production and decommissioning. www.mfdevco.com
Petrofac
Petrofac is a leading international service provider to the oil and gas production and processing industry, with a diverse client portfolio including many of the world's leading integrated, independent and national oil and gas companies. Petrofac is quoted on the
Petrofac designs and builds oil and gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac's range of services meets its clients' needs across the full life cycle of oil and gas assets.
With around 11,500 employees, Petrofac operates out of seven strategically located operational centres, in
Gas to Wire
Gas to wire offers an alternative method of economically recovering offshore gas resources. Rather than developing and exporting gas using traditional methods, gas is converted to power using gas turbine generators located on an offshore platform and the power is transmitted to shore using subsea power cables.
Benefits of recovering gas resources using this method for the Company and MFDevCo include:
· Value Adding: Low-cost entry to low-risk production with the possibility to further extend revenue through hydrokinetic energy;
· Low capital requirement: CAPEX reduced through utilisation of existing facilities and infrastructure, low entry cost expected;
· Access to reliable production: Development of late-life gas fields reduces subsurface risk;
· Minimising price risk: Natural arbitrage between hydrocarbon and power generation, which reduces the exposure to price risk associated with gas markets
· Accelerated time to production: Utilising existing facility & infrastructure reduces cost & lead-time for fabrication & construction; use proven technology to convert gas to wire, transported to the grid by hooking into live network;
· Attractive & complementary market: Immediate opportunities in local markets, licence holders have commercial imperative to defer decommissioning
· Regulatory support: significant contribution to objectives of delivering energy security, deferring decommissioning costs and maximising economic recover; gas to wire initiatives supported by
https://www.ogauthority.co.uk/news-publications/publications/2018/gas-to-wire-report-uk-sns-and-eis/
Disclaimer
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
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