Nu-Oil and Gas Plc (LON:NUOG) shares surged higher on Wednesday as the firm revealed that its 50% owned joint venture Company, Marginal Field Development Company Ltd (MFDevCo), has entered into a partnership with energy industry engineering group Petrofac Limited (LON:PFC).
Together MFDevCo and Petrofac will collaborate in gas-to-wire opportunities aimed at opening up ‘stranded’ gas resources.
They plan to engineer, deliver and operate facilities using platform based gas-fired power generation that will eliminate the need for costly gas pipeline development. It is expected that such facilities will boost the economic recovery of otherwise detached or uneconomic projects.
For its part, Petrofac will provide engineering support, and input to feasibility studies and opportunity screening.
MFDevCo, which is also partnered with Siemens, will secure projects suited to the proposed gas-to-wire approach.
"Maximising the economic recovery of gas resources currently considered stranded should be central to the move towards a cleaner energy future and gas to wire offers a means to do this,” said Alison Pegram, Nu-Oil and MFDevCo managing director.
“Petrofac has extensive experience in the operation, maintenance and management of gas production facilities in the UK so we're very pleased to have secured their support for our gas to wire initiative as our project negotiations intensify.”
Nick Shorten, director in Petrofac's Engineering and Production Services business, added: "At a time when industry is so firmly focused on extending the life of the UK Continental Shelf, we're delighted to be working with MFDevCo to offer new and existing clients a solution to get more from their gas reserves.
“By blending our capabilities and expertise, we believe we can provide cost-effective development solutions to unlock the full potential of marginal gas fields within the basin."
In modday trading, shares in Nu-Oil and Gas were up 15.9% at 0.26p.
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