Enegi and ABTechnology, the owners of ABT Oil & Gas, have agreed to extend the option agreement with Wood Group PSN (‘WGPSN’) until 31 March 2014.
The option agreement allows WGPSN the possibility to expand its participation in the development of the marginal field initiative, initiated by Enegi and ABT.
Alan Minty, CEO of Enegi, said: “The continuing recovery of hydrocarbons from mature basins is becoming an increasingly important topic within the industry, none more so than the UKCS. Regulators and governments are keen to maximise recovery from such mature basins which has become more difficult as discovery sizes diminish, production rates decline, infrastructure is decommissioned and costs increase.
The recently released report on the future of the UKCS highlights the need for action to be taken to adopt strategies aimed at maximising economic recovery. These strategies appear to have universal support. Marginal field solutions, which focus on a reduction in Capex and Opex through the combination of being unmanned and redeployable, offer a key building block in achieving the aim of maximum economic recovery.
In order to maximise the opportunities to develop marginal fields, Enegi and ABT are reviewing the structure of its JV, ABT Oil and Gas and expect to make an announcement on this in due course.”
Via a framework agreement executed in 2011, Wood Group PSN is a strategic partner of ABT in the commercial exploitation of unmanned buoy technology which allows Wood Group PSN exclusivity in the provision of a number of engineering services. The recent acceleration in the development of the marginal field initiative, in terms of industry interest, project acquisition and expansion of the technology portfolio, has encouraged the parties via the Option to reassess the relationship with a view to Wood Group PSN participating more widely in the development of the business.