Octanex N.L. announced Thursday that limited recourse project finance has been secured for the development of the Ophir field, offshore Terengganu, Malaysia.
Octanex is a 50 percent shareholder in Ophir Production Sdn Bhd (OPSB) which was awarded the Ophir Risk Service Contract in June. Octanex's joint venturers in OPSB are Scomi Energy Services Bhd, a Malaysian downstream oil and gas services company listed on the Main Board of Bursa Malaysia with a 30 percent interest, and Vestigo Petroleum Sdn Bhd, a wholly owned subsidiary of Petronas, incorporated in 2013 with a focus on the development of small, marginal and mature fields, holding a 20 percent interest.
The Ophir oil field will be developed by OPSB via a simple stand-alone development with first oil expected in December 2015. This involves the drilling of three production wells from a single wellhead platform producing into a leased tanker for storage and offloading of crude. The capital cost of the development is estimated at $135 million.
OPSB has accepted a Letter of Offer for syndicated term loan facilities of up to $118.76 million for 75 percent of the planned capital expenditure for the development of the Ophir field, 75 percent of the first three quarters of operating expenditure and a bank guarantee facility of $13.5 million. The finance is to be provided by a syndicate comprised of Malayan Banking Berhad (Maybank), RHB Bank (L) Ltd. and United Overseas Bank Limited. The tenure of the term loan facilities is up to four years. Octanex N.L. has provided a proportionate corporate guarantee and undertaking in respect of the facilities.
Octanex Chairman, Geoff Albers, comment: “Securing project financing is an important milestone for the development of the Ophir oil field.”
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