Enegi Oil creates Marginal Field Initiative consortium

Enegi Oil (the Company) has announced that Kongsberg Maritime and Braemar ACM Shipbroking have signed Collaboration Agreements with ABT Oil and Gas Ltd. (the Enegi’s joint venture with ABTechnology Ltd.) becoming the first members of the consortium that is targeted at the delivery of the Marginal Field Initiative.  The advent of the consortium will significantly drive forward the delivery of the Marginal Field Initiative.

Highlights:

  • Collaboration agreements signed with major industry players who will become members of the consortium to deliver the Company’s Marginal Field Initiative:
  • Kongsberg  Maritime– will provide ‘Best in class’ proven remote control and monitoring  technology for ABTOG’s normally unattended development solutions
  • Braemar ACM Shipbroking– will assist in sourcing financing, asset negotiations and shipyard negotiations
  • All parties will also market the Marginal Field Initiative through their global networks with a view to sourcing projects for the initiative
  • The signing of these agreement is expected to provide significant impetus to ABTOG’s Marginal Field Initiative
  • Collaboration agreements provide that each of KONGSBERG and Braemar ACM perform their roles through the application of their own resources
  • Discussions ongoing with other complementary major industry players to join the consortium providing further appropriate expertise to the Marginal Field Initiative particularly in the areas of engineering design, project management, fabrication yard, topsides, duty holdership and funding
  • Principle of collaboration is that each partner demonstrates their belief and commitment to the Marginal Field Initiative through investment, which is tailored, to each party’s contribution.

Alan Minty, CEO & Chairman of Enegi, commented:

“We continue to believe that the Marginal Field Initiative is a truly global opportunity.  The agreements that ABTOG has completed with these major industry players further justifies this belief whilst greatly endorsing and providing further credibility to our initiative.  We are pleased with this progress as we seek to bring together a consortium of like-minded industry players with the expertise to deliver the Marginal Field Initiative.

We expect these companies, as well as the addition of further industry players in the near future, to significantly increase the venture’s activity.  We look forward to working with our new partners, gaining further projects and taking the Marginal Field Initiative to the next stage of its development.”

James Kidwell CEO Braemar Shipping Services PLC said:

“We are happy to be partnering with ABTOG on their Marginal Field Initiative.  ABTOG’s business model and strategy is very timely as the industry is looking closely at costs and how to continue to ensure effective economic future production.  We believe that this has the potential to be a considerable initiative. The ability of ABTOG’s solutions to significantly reduce the Opex and Capex on oil and gas development projects and the returns that can be gained will in our view undoubtedly appeal to operators and investors alike.  We look forward to working with ABTOG and its partners in taking the venture forward and gaining further projects.” 

Dean Jennings, Sales Manager, Offshore Production Units, Kongsberg Maritime comments:

“The effect that normally unattended operations could have on operating expense is enormous. We fully endorse ABTOG’s belief that normally unattended operations offer significant potential for the advancement of offshore oil and gas production particularly at this time when the industry is focussed on cost reduction.

We believe that our expertise and best in class proven remote control technology and monitoring can deliver leading edge development solutions that can maximise recovery from smaller fields given the significant reduction in Opex and Capex that they provide.  We look forward to working with all the partners in delivering this initiative.”

Marginal Field Initiative Consortium

Enegi, through its joint venture ABT Oil & Gas Ltd. (“ABTOG”), has been progressing the Marginal Field Initiative for a number of years.  Over that time ABTOG has refined the business model and significantly progressed the project delivery mechanism to ensure that marginal fields, which will remain undeveloped if only using conventional development solutions, can be developed providing returns that justify the investment in these projects.  The key benefit of this work is that ABTOG has successfully proven that, in many cases, the Opex and Capex costs of a project can be significantly reduced enabling projects, which have been deemed to be uneconomic to be developed to provide considerable returns to the operators and investors alike.

Dialogue with the market and, in particular, asset owners continually reinforces the need for delivery capability to be demonstrable. ABTOG’s offering requires expertise across a broad spectrum of disciplines and, as such, it is looking to build a consortium of established industry partners in order to ensure that the ability to deliver is undeniable. ABTOG is seeking to establish relationships with companies that are forward thinking, recognise the opportunity offered by the Marginal Field Initiative and are willing to support their belief through the application of their own resources

The agreements with KONGSBERG and Braemar ACM reflect those principles. Both are strong industry partners, recognised global leaders in their fields with extensive resources, which they intend to apply to advance the Marginal Field Initiative. Through these partnerships the Marginal Field Initiative benefits through the advancement of key areas such as:

  • the demonstration of a normally unattended installation which is critical for Opex reductions.
  • access to capital.
  • expanding global reach to access projects.
  • enhancing credibility.
  • direct investment into advancing the initiative.

ABTOG is working on further collaboration agreements including engineering design, project management and facility construction, all based upon the same principles, and expects to be able to announce further arrangements in due course. Completion of these arrangements will create a consortium dedicated to the implementation of marginal field solutions, which will allow ABTOG’s visions and business model to become a reality.


Adapted from a press release by David Bizley

Published on 15/04/2015


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