Oilfield services firm Wood Group PSN is set to play a greater role in developing an unmanned production buoy concept aimed at making marginal fields economic after entering into an exclusive option agreement with ABT Oil & Gas.
Enegi Oil, one of ABT's owners, reported Monday that the option provides Wood Group with an exclusive right for a period of 90 days to conclude an agreement to expand its participation in Enegi's and ABT's marginal field initiative. Enegi said the recent acceleration in the development of the marginal field initiative has encouraged the parties to reassess the relationship with a view to Wood Group participating more widely in the development of the business.
In mid-November, ABT farmed into two dormant oilfields offshore Ireland where it plans to use its production buoy concept to make the fields economic. This deal followed a similar deal in July, in which ABT farmed into Antrim Energy's UK central North Sea license P077 – which contains the Fyne field.
Commenting on the deal Monday, Enegi CEO Alan Minty said:
"The execution of the option with Wood Group PSN is further evidence of the attractiveness of the marginal field business model and reflects the progress that has been made in developing the business. The option represents the first step in securing independent investment into this initiative.
"Successful conclusion of negotiations would see stronger links with a leading, global engineering services company providing access to the engineering manpower and expertise that will be needed to deliver on the many projects that it expects to secure and fulfil the potential of the marginal field initiative."
Analysts at UK investment bank Shore Capital added:
"Wood Group PSN is already a technical partner of ABT Oil & Gas. We therefore consider a greater level of involvement as a natural progression from the current position and, with the possibility of direct investment or participation by a major oil services company, this is highly encouraging news."
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