Sure it will, but $135m won't quite hack it though should get XEL through FDP approval phase. Best thing would be for a jv partner to come in before/after the FDP and add some cash to the pot before MOUs need to be firmed up and signed off on.
The platform probably can be funded as a floater for a % down of the unit cost. But with 3 major items with a capital value close to $1bn, and XEL having to fund the startup costs until first oil flows, including the possibility of needing in the interim to drill further wells into the expiring 26th Round leases, plus the 27th Round reqts on the horizon by then, there will be numerous competing calls on whatever cash XEL has managed to raise.
A lease purchase might seem the best option if they can get it, minimize cash outflow until Bentley's in full production. Whatever, XEL needs to keep a careful eye out for capex over runs during the development phase by endeavouring to secure competitive bidding from contracted 3rd parties.
rupert told us on the 1st july that the bond sale would give us more flexibility and additional resources to work towards the FDP.........that says to me we are going to fund it.......it is our field after all
Nobody's said as yet who is going to fund this, All very well to have contractors lining up saying they are doing this and that, if this unit is coming out of XEL, or the RBL Banks money, someone's going to require that it be tendered and a competitive cost thereafter put against it's supply. XEL at the end of the day will be paying for this, it can't be on the basis of a blank cheque the company's giving out, no matter how keen they may be to move this along.
the 'Bentley Development Group' is being assembled.
Who's next to be announced I wonder...?
June 2012 Aibel has signed a collaboration agreement with AMEC. The agreement will extend Aibel’s capacity for executing projects, and together with Aibel’s recruitment strategy this forms the basis for the company’s growth strategy.
"Through the collaboration agreement, Aibel will gain access to AMEC's engineering, procurement, project delivery and management expertise. This agreement makes it possible for us to a larger extent participate in the growing market, says President and CEO Jan Skogseth.
July 2014 Aibel will work with AMEC, the international engineering and project management company, acting as XER’s Project Management Contractor, to deliver the ACE platform.
Xcite Energy said it believed that the combination of the AMEC, Arup and Aibel project management, engineering, and construction experience will deliver a quality and cost effective asset.
Rupert Cole, CEO of Xcite Energy, commented: “We are very pleased to have Aibel, with its experience and expertise in offshore projects, join the Bentley development group for the construction of the ACE platform, which has significant economic benefits over the life of the field, including rapid deployment and ease of decommissioning.
This further validates our strategy and development plan as we continue to refine the project costs and reduce future schedule risk through the early involvement of our development partners, prior to submission of a field development plan.”
When one adds in the nominally oversize, special FSU being looked into by the Teekay MOU, contractor to Statoil. BP, and even XEL, one also begins to get the distinct impression the jv situation is heading in one direction. Surely XEL alone, as a minnow re cost and time, would want to go the Premier route as per Solan, economize, and with what can be brought in relatively quickly to get production going.
Yep, what's intriguing about these Aibel seeming MOU XEL claims, even re construction of this unit to be in Thailand, is that nobody's owned up as yet as to who the owner is going to be. It will be a huge, expensive project, and one would normally think any prospective owner, even if were to be XEL, would therefore when the design is finalized, want to go out to tender to several yards around the world that could fabricate this thing, and deliver on time.
Aibel have a 40% stake in a Thai steel fabricator, Deeline, in addition to their own platform yard in Thailand, with an option to expand that stake from current 40% up. There are foreign company restrictions however as to just how much they can hold. Deeline will be, as of 8/2014 not accepting more local sub contract work. Maybe they think they are going to be too busy..
Apart from other ongoing contracts, Aibel's connection to Statoil, and Thailand, is illustrated in the third link below.
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