Aker Solutions will be providing duty holder or ‘installation operator’ services on Marginal Field Development Company’s offshore oil and gas projects.
MFDevCo, as the company is also known, on Tuesday said the addition of dutyholder capability is imperative in the final phases of project due diligence and provides the link with the operational stage of projects.
“Prior to project acquisition, it is important to secure a duty holder that understands MFDevCo’s operating philosophy and will exercise the strong control of ‘through-life’ costs that is vital if forecast project economics are to be maintained,” the company said.
Under the agreement signed, MFDevCo has granted Aker Solutions the right of first refusal to provide duty holder services on all MFDevCo projects; in return, Aker Solutions will invest resources in assisting MFDevCo in the identification and initial assessment of potential projects.
The investment that Aker Solutions is making in project evaluation is a major contribution to MFDevCo’s project due diligence and provides third-party verification that will be invaluable to investors and as MFDevCo finalize project finance strategies, MFDevCo said.
According to MFDevCo, the duty holder input also brings an additional dimension to the Suitability Assessments MFDevCo undertakes for projects and facilities by providing greater certainty in the estimation of through-life costs and, again, greater confidence to investors.
In addition to the initial assessment, Aker Solutions will provide operational input throughout the design and delivery stages of projects on which it will be duty holder, to ensure that facilities can be operated safely and effectively, in line with specified performance criteria and with through-life costs controlled. Operations oversight services will be delivered on a deferred payment basis with costs recovered from production.
The initial term of the agreement is five years and both parties intend it to form the basis for a long-term working relationship with the potential for increasing efficiencies in service provision and working practices going forward.
Alison Pegram, Managing Director of MFDevCo, commented, “Signing this agreement with Aker Solutions is a very significant step for us, ensuring that we have the support and expertise required not only to deliver but also to operate our projects safely and cost-effectively. Aker Solutions’ commitment to innovation and collaboration fits very well with our own philosophy and that of our Consortium; their reputation and experience will lend further credibility and give additional confidence to partners and potential investors at what is an extremely exciting time for the company.”
“Working with Marginal Field Development Company is an excellent fit for Aker Solutions in the UK,” said SVP Craig Wiggins, who heads Aker Solutions’ production asset services business in the UK. “The relationship will capitalize on our broad capabilities including our strength in ‘installation operator’ services.”