Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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after a surprise cut by Saudi's and Opec. Seems they aren't happy with mid $70's and acted accordingly to increase price.
With SL's life of field cost around $27.5/b, it remains the case, that Navitas are almost certain to sanction,
and I doubt they will be dragging their heels like PMO did !
Thanks Norseman. Oder of events now understood.
Talking about Bluewater: They have Bleo Holman FPSO becoming available end 2024 ( latest end 2025).
https://www.repsolsinopecuk.com/news/repsol-sinopec-announce-contract-extension-of-bleo-holm-fpso
https://www.bluewater.com/wp-content/uploads/2019/06/Bleo-Holm.pdf
https://www.repsolsinopecuk.com/news/repsol-sinopec-announce-contract-extension-of-bleo-holm-fpso
Whackford
The Final Investment Decision is normally based on front end engineering design (FEED) where the cost has been estimated to within +/- 20% or so. To do that in our case we need to know details of the FPSO we are going to redeploy so we know what changes are required to the topsides process system and hull and also cost of the lease. So I would think Navitas would issue a letter of intent first with a FPSO operator like Bluewater for example like this:
https://www.rigzone.com/news/oil_gas/a/65942/oilexco_enters_loi_with_bluewater_to_deploy_fpso_at_north_seas_huntington/
Case Outcomes
The outcome of cases at ICSID has been consistently balanced between States and investors—and 2022 was no different. Overall, 49% of cases concluded in 2022 were decided by tribunals and 51% were settled or otherwise discontinued.
Among cases decided by tribunals, 56% of awards upheld the investors’ claims in part or in full. Of the remaining share, 28% of awards rejected all of the investors’ claims on the merits, 8% of awards declined jurisdiction, and 8% of cases were dismissed for manifest lack of legal merit.
The Falklands war started.
God bless the those who lost their lives.
From 2021 Annual Report: “Employees
The Group had 12 employees at the year end, two of whom are Executive Directors. The Group seeks to employ people on the basis of merit and ability to perform the required roles. The Group does not discriminate on any grounds including race, gender, religion, age, nationality or sexual orientation”
———
12 employees to do what???
Well I’m expecting an ICSID update next week. This committee has been quite hot on sticking to the timetable so I think they will issue a decision by 5th April.
I have no idea what they decision will be(!) but I think we will hear this week.
Not expecting any updates, we’ll not from the RKH BoD.
Their attitude towards shareholders has been atrocious.
Noboil. But that was 4 years and 3 months ago and every week after that. Still waiting though… However her timeline changes daily/weekly/monthly/yearly. And if that fails just pretend to forget. Simple. Yes she is.
Anyone expecting an update next week?
Just found this;
Petrojarl Knarr has been at Aker Solutions yard at Stord, Norway since August 2022 after completing oil production on the Knarr project in Norway.
“Aker Solutions intends to contract tugs to tow the Petrojarl Knarr FPSO from Norway to Dubai H2 2023 ready for its major upgrade. It expects the EPC work to begin H1 2024 and finish at the end of 2025.”
So if Navitas intend to have oil flowing late 2026 then they would need to find a suitable FPSO by H2 2024 to allow time for it to travel to a suitable shipyard for refit.
Still not sure how FID works though, do they FID then go look at booking the rig, manpower, etc or do they get letters of intent signed off on costs and get everything lined up ready for the FID project sanction button to be pushed? Either way they will have to get some brass in before all that.
LTT
Thanks Thenorseman. Are you saying they will need to make a contract for the FPSO before FID? I would have thought it was the other way round - but I know little of these matters.
Thanks for that Thenorseman. Are you saying a separate drill facility / rig for the development drilling ?
We have finished the exploration and appraisal drilling - all paid for.
We will still have to do development drilling whilst FPSO is upgraded at the yard and later
Next big news is the contract for the FPSO selected to be redeployed. This will be very soon now as they need to know the scope and cost and scope of changes/upgrade they have to do to get to FID.
I think the evidence suggests they do have it wrong Bootledodger, however time, as always, will tell :)
Not like you to be helpful Citizen but thanks nonetheless. How is Kansas ?
someone tell him what the "P" stands for
Maybe I’m missing something but don’t RKH have to drill first ?
Now THAT information to the solution would push the SP along …
…..
The Opportunity FPSO, which is moored in Singapore at the Keppel Shipyard facility, was the only redeployment candidate in BW's fleet, and the company was promoting the floater as a versatile vessel, suitable for gas and oil projects, with gas projects preferred given its high gas production capability of 350 million cubic feet per day.
The floater was converted from a tanker in 2007. It is a spread-moored FPSO with an oil processing capability of 35,000 barrels per day and a storage capacity of 900,000 barrels.
BW told Upstream that its strategy for new projects is to seek long-term leases that require a new-built FPSO like it is currently doing with the Barossa project in Australia.
However, on redeployments, the company has approached this with more flexibility in terms of the commercial model that can be applied.
Bumi options
As for the Armada Claire FPSO, its Malaysian owner Bumi Armada has been seeking a buyer or a redeployment opportunity for some time.
Bumi said last month in its annual financial results that it was engaging with potential buyers of the vessel, and numerous vessel inspections had been carried out.
Malaysian floater player pins down strategy for African FPSO
Read more
Market sources have told Upstream that a sale agreement has been reached — but not yet completed —with a European shipowner that has designs on redeploying, or re-selling, the FPSO to another party.
A spokesperson for Bumi said the company was unable to comment on the Armada Claire at this moment in time.
The Armada Claire, which is understood to be currently moored in Indonesia, was converted into an FPSO by Keppel Shipyard in 2013 from a 1993-built tanker.
The vessel has an oil production capacity of 30,000 barrels per day and a storage capacity of 800,000 bpd.
It has worked on just one project - the Balnaves oilfield off Western Australia - which ended prematurely in 2016 when Woodside terminated the FPSO's contract.
Redeployment moves
There has been a flurry of interest in redeployment options in recent months.
In February, Dubai'sDrydocks World announced a joint venture with Aker Solutions to upgrade the FPSO Petrojarl Knarr for Equinor’s Rosebank oil and gas field off the coast of Shetland in Scotland.
Sources consulted by Upstream reported a wave of interest in the OSX-1 FPSO, recently reported arriving in Norway after a long period out of operation.
"The OSX-1 is a candidate for seven or eight different projects around the world. I think it will be secured soon," said one market source.
Plans afoot for ageing FPSOs under new ownership
The two vessels are the Opportunity FPSO and the Armada Claire FPSO
31 March 2023 4:45 GMT UPDATED 31 March 2023 7:14 GMT
By Russell Searancke , Nishant Ugal and Iain Esau in Oslo , New Delhi and London
The fate of two ageing floating production, storage and offloading vessels that have not operated for some time is becoming clearer as fresh assignments loom under new owners and the number of units available for redeployment dwindles.
FPSO contractors set sights on five promising floater prospects in South East Asia
Read more
BW Offshore surprises with sale of gas FPSO to mystery buyer
Read more
The two vessels in question are the BW Opportunity FPSO, and the Armada Claire FPSO.
The FPSO market was taken by surprise earlier this month when BW Offshore revealed it had agreed to sell the Opportunity for $125 million.
It was a surprise because BW was actively marketing the floater for redeployment and, given the vessel is designed for high gas production rates, it was assumed BW would secure a viable new project for the Opportunity.
BW has not identified the buyer, even after completing the sale on 15 March, but multiple FPSO market sources have indicated the floater has been purchased for use in the Mediterranean Sea, with most arrows pointing at Turkey.
One well-placed source told Upstream that state-owned Turkish Petroleum (TPAO) made informal approaches to the market last year about ordering a newbuild FPSO, but those inquiries do not appear to have been followed up.
If Turkey is the destination for BW Opportunity, there is a possibility it could be deployed on one of TPAO's deepwater gas and condensate discoveries in the Black Sea, some of which it is in the process of developing through a long-distance subsea tieback to shore.
There has also been speculation the FPSO could be deployed in Libya, a country with whom Ankara has close ties, or perhaps in Cyprus where TPAO has previously drilled controversial exploration wells (which were thought to be unsuccessful) in the Cypriot exclusive economic zone.
The only other known player in Turkey with offshore assets is US player Trillion Energy which is developing shallow-water gas in the Black Sea.
In the broader Mediterranean, significant gas discoveries have been made in Cyprus, Israel and Egypt in recent years by the likes of ExxonMobil, Eni and Energean which have the potential to host an FPSO.
Back to BW?
BW told Upstream the company is not at liberty to disclose the buyer.
However, the Oslo-listed player said this would be re-addressed if ongoing discussions with the buyer resulted in BW also doing the engineering, procurement, construction and commissioning work to upgrade the floater, and BW secures a five-year transitional operations and maintenance contract.
The Opportunity FPSO, which is moored in Singapore at the Keppel Shipyard facility, was the only redeployment candidate
Spacehoppa: I am delighted we've got the Israelis on board - and agree with a your positive comments regarding their involvement.
However...that the sp only proves my point.
Let's pray the market has got this one wrong.
@ buzz
ha, yes! When I was in Piemonte in Oct I saw how the Italians use public revenue - to subsidise government run wine tasting centres for local wines such as Barolo. They should pay their debts first before spending it on good wine!
https://www.ft.com/content/7640e7bc-6006-47d9-bf66-ae3033338618
Shouldn't Italy be using EU money to help sort out their energy problems rather than football !?
If anyone here doesn't think Mr Market is a fool , ask yourself why PFC rose 80%+ yesterday? Mr Market has no clue how to value a company , as is seen on a daily basis by the huge rise in many companies every week.