Oilexco contracts floating production unit for Shelley
2007-02-08 08:10 ET - News Release
Mr. Arthur Millholland reports
OILEXCO ENTERS INTO AGREEMENT TO CONTRACT FLOATING PRODUCTION FACILITY FOR SHELLEY
Oilexco Inc.'s wholly owned subsidiary Oilexco North Sea Ltd. has entered into a letter of intent and interim agreement with Sevan Marine ASA for the charter of the Sevan 3 floating production unit, to be installed in early to mid-2008 on the company's 100-per-cent-owned Shelley oil development project located in block 22/2b in the central U.K. North Sea.
The Sevan 3 currently under construction at the Yantai Raffles shipyard is the fourth floating production unit to be contracted based on the Sevan 300 design. Three of these units will be based in the U.K. North Sea. The Seven 3 is intended to be contracted for a fixed term of five years, with extension options for an additional five years. The value of the contract for the fixed term is approximately $370-million (U.S.). The final specification of the processing plant is yet to be determined, but it is anticipated that plant will have a minimum oil process capacity of 30,000 barrels per day and a water process capacity of 20,000 barrels per day.
"This design is a superior solution to the issues facing floating production units in harsh environments," commented Oilexco president and chief executive officer, Arthur Millholland. "The availability of this vessel will allow an efficient year-round, low-operating-cost production solution to Shelley in an early time frame. It will allow us to maintain an aggressive development schedule, in addition to allowing the company to better control our future destiny by processing our oil through our facility," added Mr. Millholland.
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