5th October 2016
This announcement contains inside information.
NU-OIL AND GAS PLC
("Nu-Oil" or the "Company")
Aibel invests to gain exclusive rights to become Partner EPC Contractor
Nu-Oil is pleased to announce that Marginal Field Development Company ("MFDevCo"), the company in which Nu-Oil has invested as part of its strategy to generate a portfolio of assets, has entered into an agreement with Aibel AS ('Aibel') whereby Aibel will take on the role of Partner EPC Contractor for MFDevCo's marginal field initiative and future projects. Aibel joined MFDevCo's Marginal Field Delivery Consortium (the "Consortium") in February 2016 to provide project management and EPC services but this new agreement represents a very significant increase in Aibel's commitment to the development of marginal and stranded field projects alongside MFDevCo.
In order to gain exclusive rights to provide project management, engineering and EPC services throughout the life of MFDevCo projects, Aibel has committed to investing in establishing the working structure for MFDevCo and the Consortium, supporting business development through the provision of upfront engineering on target projects and providing engineering services to further the engineering specification of MFDevCo's existing solutions and their ongoing refinement. This latter aspect of Aibel's commitment will allow MFDevCo to target fields in deeper water, further improve cost efficiencies and take advantage, in future, of emerging proven technologies. It will also, critically, improve MFDevCo's ability to demonstrate at an early evaluation stage the robust technical suitability of the solutions for a given field and, with a very high level of confidence, the associated costings.
MFDevCo has been developing and progressing its marginal field initiative for six years but this agreement with Aibel is very significant, not only in terms of the validation of the company's business model but also, perhaps more importantly, in demonstrating to potential clients and partners the world-leading experience and capability that is now available to MFDevCo to ensure the successful development and delivery of marginal field projects.
Alison Pegram, Managing Director of MFDevCo, commented, "Our primary focus recently has been on negotiations to secure projects and, with those progressing well, the signing of this announcement with Aibel is very timely as their support will be critical not only for the delivery of those projects, but also for future development of our solutions."
Nigel Burton, CEO of Nu-Oil and Gas plc, commented, "The agreement with Aibel represents a significant advance in the development of the business model. Aibel's investment ensures that resource is available to assess and define projects as part of the acquisition process and in establishing the delivery mechanism. The resource will be applied in assessing a number of already identified target projects."
NU-Oil and Gas plc
Alan Minty, Executive Chairman Tel: +44 161 817 7460
Nigel Burton, CEO Tel: +44 7785 234447
Beaufort Securities Limited Tel: +44 20 7382 8300
Neil McDonald Tel: +44 131 220 9771
Derrick Lee Tel: +44 131 220 6939
St Brides Partners Limited Tel: +44 20 7236 1177
Note to Editors:
NU-Oil and Gas plc (NUOG) is an independent oil and gas company whose strategy is to build a diverse portfolio of assets with a strong emphasis on acquiring interests in stranded and marginal fields. These fields are producing or highly-appraised. NUOG will look to develop these assets utilising solutions delivered by Marginal Field Delivery Company ("MFDevCo" formerly ABT Oil and Gas Ltd) and the MFD Consortium, which can significantly improve the development economics of a project. This is also expected to enable the early booking of reserves.
Aibel AS is a leading service company that works within the oil, gas and renewable energy sectors. Aibel has around 4,300 employees engaged in work both onshore and offshore. The company delivers the full range of EPC services. The scope of services includes concept studies, FEEDs, engineering, procurement, fabrication, installation, system completion, maintenance, operational support and decommissioning.
Marginal Field Delivery Company (formerly ABT Oil and Gas Ltd) (www.mfdevco.com)
Marginal Field Delivery Company ('MFDevCo') is a company in which Nu-Oil has invested as part of it strategy generate a portfolio of projects. It focuses on maximising recovery from the vast, undeveloped hydrocarbon resources contained within marginal fields worldwide, utilising appropriate re-deployable solutions to transform these undervalued assets. MFDevCo manages the entire lifecycle of marginal field projects from opportunity screening, suitability assessment and financing through engineering to production and decommissioning. The solutions developed can be used to:
· Realise the potential from marginal or stranded fields
· Extend the life of mature fields
· Rejuvenate fields with a previous or existing development solution that is currently sub-economic
· Defer decommissioning liabilities
· Provide early production systems
The Marginal Field Delivery Consortium
The Marginal Field Delivery Consortium (the Consortium) is a collaborative partnership, established and led by MFDevCo, between upstream oil and gas industry specialists committed to developing hydrocarbon resources around the world which cannot be economically recovered using conventional methods. Through its members, The Consortium offers the technology and services required to deliver marginal oil and gas projects from project identification and concept selection through to operation and decommissioning, using cost-effective and re-deployable production solutions which transform the economics of marginal fields by reducing the development costs by up to 60% compared to using conventional solutions.
The Consortium is led by MFDevCo and also includes:
Aibel - Project management, engineering and EPC services
Arup - ACE platform and project management
Kongsberg - Control and automation systems for 'normally unattended' operations
Frames - Process and utility design for 'normally unattended' solutions
RMRI - Managing regulatory aspects of 'normally unattended' operations
Braemar ACM - Facility financing, yard broker and assistance with project acquisition
AGR - Drilling management and well design services
Apollo - NU-SIFT structural engineering
This information is provided by RNS