Enegi reports updated field initiative
Enegi is delighted to provide the following update from its Chairman Alan Minty on its marginal field initiative.
- Enegi has formulated a strategy currently being implemented; it focuses on the ‘marginal field initiative’ communicated to the market over the last three years (the ‘Initiative’).
- Enegi has invested in ABT Oil and Gas (‘ABTOG’) to utilise the solutions that ABTOG has developed to create a portfolio of projects to drive Enegi’s value.
- ABTOG’s solutions reduce the total capital and operational expense of a project by up to 60% over its life (the ‘cost transform).
- Enegi and ABTOG will work together to use the principles of the Cost Transform to identify, acquire and develop projects that have great unrealised value.
- Current oil price environment and the industry’s need to reduce costs provides Enegi with a significant opportunity given its ability to achieve the Cost Transform.
- A number of projects have already been identified with negotiations under way to enable the projects to be delivered by the Consortium.
- Enegi has established a proven long term revenue model which will provide significant benefits through its investment in ABTOG as well as via its own projects.
- Arup’s inclusion in the MFD Consortium (the ‘Consortium’) (see separate announcement) is the final essential member of the Consortium
- The Consortium with an aggregate value of circa US$5billion of companies provides significant credibility and expertise to ensure projects are delivered on time, on budget, in order to provide returns for investors and operators.
- Strategic members of the Consortium are investing significant time and services at risk in order to develop the initiative, taking the form of technical services, marketing and business development to secure projects.
Alan Minty, Chairman of Enegi commented:
“After what has been a long and often frustrating journey, Enegi is now strongly positioned to take forward and considerably benefit from its investment in ABTOG and the creation of the Consortium. We believe that all the key elements are now in place and expect to add new projects to the portfolio which the Consortium has the ability to economically develop, delivering excellent returns on time and on budget. We look forward to working with all our partners taking this venture forward and delivering on the model and strategy that we have outlined.”
Adapted from a press release by Louise Mulhall
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