Nexus Inks LOI to Lease FPSO Offshore Philippines

Nexus Floating Production has signed a Letter of Intent (LOI) with Burgundy Global Exploration Corporation (BGEC) for the lease of the FPSO Nexus#1. The contract is for a period of seven years, with first oil scheduled for Q1 2010.

The LOI is for the Camago Malampaya Oil Leg (CMOL) project offshore the Phillipines. BGEC is granted a first right of refusal which enables Nexus to continue promoting the vessel in the market.

The agreement has a value of approximately US $800 million for a managed lease of the Nexus#1 generic FPSO over the seven year contract period. Field specific adaptations of the generic unit will be compensated separately.

"We are pleased to sign a Letter of Intent with BGEC for the CMOL project, a challenging field development in deep water in an area subject to typhoon activity. This confirms our expectations for a stronger market in deep waters, and we are happy to be in a position to support such developments with our FPSOs," said Anders Holm, CEO of Nexus Floating Production.

The CMOL project will develop the oil rim in the Malampaya Field, an oil and gas discovery located offshore the Phillipines 70 kilometers from the Palawan Islands on a water depth of 850 meters. The Camago Malampaya Oil Leg project is owned 84.9%by BGEC and 15.1% by Phillipines National Oil Company Exploration Corporation (PNOC-EC).