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    Nigerian Producer Nears FPSO Deal

Summary

Nigerian producer First E&P has breathed some life into an offshore oil and gas project that was believed stalled.

by: Mark Smedley

Posted in:

Natural Gas News, Africa, Corporate, Exploration & Production, News By Country, Malaysia, Nigeria

Nigerian Producer Nears FPSO Deal

Nigerian producer First E&P has breathed some life into an offshore oil and gas project that was believed stalled.

Malaysia’s Yinson Holdings said June 14 that it entered a heads of terms with First E&P on the potential supply and charter of a floating production storage and offloading unit (FPSO) to process hydrocarbons from the offshore Anyala and Madu fields in blocks OML 83 and OML 85 in shallow waters 40 km offshore in the Niger Delta. Yinson's business is owning and chartering out FPSOs.

The Anyala and Madu fields are discoveries with combined resources initially in place of more than 450mn barrels and more than 800bn ft3. First E&P holds a 40% interest in the licences and is the operator of the asset; NNPC holds the remaining 60%. The heads of terms, signed June 13, give Yinson exclusivity in negotiating the charter.

Schlumberger agreed in mid-2017 initially to invest $700mn in the project, subject to a final investment decision by December that year. The US-French service company now is therefore six months behind its schedule for taking FID; it said June 2017 that the project, if developed, would have an FPSO with capacity to produce 50,000 b/d oil and 120mn ft3/d gas.