Oil and gas company Mubadala Petroleum has reached an agreement with Petrofac for the modification and extension of contracts related to the FPF-003 floating production, storage and offloading vessel (Jasmine FPSO), located in the Gulf of Thailand.
The Jasmine field is operated by Mubadala Petroleum, which holds a 100 percent interest. The field is developed with six platforms and one FPSO, the FPF-003. According to Mubadala, this agreement paves the way for the continued extension of the field life of this development.
The parties have signed a new ‘life of field’ agreement for the provision of operations and maintenance (O&M) services, which has the potential to run until 2023. An extension to the associated charter lease for the vessel’s Bareboat Charter (BBC) has been signed between Mubadala and PetroFirst Infrastructure Limited.
Mubadala said that the new arrangements will result in a significant reduction in operating costs for Jasmine, underpinning the continuing commercial viability of this mature field even in the current oil price environment. They also provide for continuity in both offshore facilities and personnel. The new contracts put in place arrangements that run, potentially, until end 2023 with a six-month termination option incorporated to provide the necessary flexibility.
Commenting on the contract awards, Musabbeh Al Kaabi, CEO of Mubadala Petroleum, said, “We are pleased to be able to continue our relationship with Petrofac on the Jasmine field. The new arrangements will support the ongoing commerciality of the field as well as providing important continuity in this mature operation.
“Jasmine has been a remarkable success story, having produced over 60 million barrels, several times more than original estimates of recoverable reserves. We believe there is more to come but it is a complex set of reservoirs and a mature asset, so a competitive and flexible approach to operations is vital.”