Enegi Signs Up Apollo to Marginal Field Consortium
Junior energy firm Enegi Oil announced Friday that it has recruited Apollo Offshore Engineering as a partner of its Marginal Field Delivery Consortium. However, Enegi also revealed that extensive discussions with Wood Group PSN have not resulted in an agreement between the two companies to pursue marginal field solutions.
Enegi, through a joint venture called ABTOG, has been working on ways of using existing technologies in new ways to exploit small oil and gas fields that are deemed non-commercial using conventional means of production. One of the potential solutions for marginal field development that it had been discussing with Wood Group is for a Self-Installing Floating Tower (SIFT) that would first be applied to the Fyne field in the North Sea.
Fyne is an extensively-appraised oilfield that has estimated 2P reserves of 9.9 million barrels with an API gravity of 25 degrees.
The agreement with Apollo announced Friday allows ABTOG to work exclusively with one organization, ensuring that intellectual property and knowhow generated in any particular project is not widely circulated. Enegi believes this will lead to economies of scale for future projects that will benefit ABTOG and its partners.
ABTOG is already working with Apollo on its current solutions and on expanding its solution portfolio in both fixed and tethered solutions, with the aim always being to keep capex as low as reasonably practicable whilst ensuring that any solution will be able to be normally unattended keeping operational spending to a minimum, Enegi said.
Commenting on the deal in a statement, Enegi CEO Alan Minty said:
"We are delighted that Apollo has agreed to join the Marginal Field Delivery Consortium. Their structural engineering expertise will be invaluable in ensuring the delivery of our solutions and in helping us to create additional solutions which will further enhance our offering in line with our strategy of reducing capex and opex to enable the development of projects.
"Sadly, agreement was unable to be reached with Wood Group PSN, but we believe that with the members we already have and those we are in discussions with we are creating a consortium with the ability to provide a 'one stop shop' to deliver our Marginal Field Initiative and look forward to working with Apollo and the other members of the consortium to take this venture forward."
Jonathan White, business development director at Apollo Offshore Engineering, added:
"We are extremely delighted to be working with the MFD consortium and ABT Oil and Gas to develop robust, cost-effective solutions for marginal and stranded reserves. There is still significant potential in the North Sea and beyond for innovative production solutions that will allow operators to extract reserves both efficiently and effectively. ABT Oil and Gas have recognized Apollo's expertise in effective and innovative engineering for fixed and floating assets that will be applied in this project."
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