Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF) told investors that it has, alongside its other Buchan field partners, agreed the acquisition of the Western Isles floating production, storage and offloading (FPSO) vessel.
Western Isles has been operational since 2017, located in the North Sea, and it will be deployed in the planned redevelopment of the Buchan field.
It comes as the Buchan partners are advancing "at pace" the front-end engineering and design for the project, enabling the field development plan which is slated for approval in 2024.
"Finalising the terms for the joint venture partners to acquire the FPSO, which is less than eight years old and requires relatively modest adaptation for our planned GBA redevelopment, is a tremendous milestone for the project,” Jersey chief executive Andrew Benitz said in a statement.
"Re-using existing high-quality infrastructure and modifying it to be electrification-ready is exactly in line with our stated low carbon strategy and the net zero related objectives of the industry.
“The vessel is the cornerstone to completing the engineering work required to facilitate FDP approval for the Buchan redevelopment next year."
Jersey noted that it is set to receive US$9.4 million of cash from partner NEO Energy as a milestone payment resulting from the "finalisation of the Greater Buchan Area development solution".