Tulip Oil Presses Ahead with 'Major' Offshore Producing Asset
Tulip Oil Netherlands Offshore B.V. has confirmed that it will proceed with the development of the Q10 gas field, which is expected to become a ‘major’ offshore producing asset in the Netherlands.
The Q10 gas field development will encompass an unmanned offshore platform (Q10-A) with a pipeline tie-back to the TAQA operated P15d asset. Tulip expects first gas from the project to commence in 2019.
Output from the development will contribute to production reductions from other assets in the Netherlands. Heerema has been awarded platform work for the project and Allseas has been chosen for pipeline work.
“This marks a major step forward for both Tulip and our partner, Energie Beheer Nederland B.V. (EBN),” Imad Mohsen, Tulip’s CEO said in a company statement.
“We are happy to see our assets moving forward into development and generate significant cashflow,” Mohsen added.
The Q10 gas field (previously referred to as Q07A) was discovered in 2015 and lies 20 kilometres offshore the Netherlands in a shallow water environment. Tulip owns a 60 percent operated interest in the block where the asset is based. Energie Beheer Nederland B.V. (EBN) holds the remaining interest.
In October last year, Tulip announced the successful placement of a $106 million (EUR 87 million) 5 year senior secured bond. Net proceeds from the issuance will primarily be used for the development of Q10, according to the company.
“This bond issuance marks a significant step forward for Tulip Oil and a re-opening of the high yield bond market for the exploration and production sector. This is testament to the high quality of the Q07A [Q10] discovery and the Tulip Oil management team,” Martin Bell, Tulip chief financial officer, said in a company statement at the time.
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