India’s Mercator Limited has informed that the sale of the floating production unit (FPU) Virini Prem to Oriental Energy Resources has been delayed due to process reasons.
The sale of the FPU Virini Prem was agreed on December 9, 2016, at which time Oriental agreed to pay $76 million for the FPU.
The two companies expected to complete the deal on Monday, January 30, but Mercator said on Tuesday that the completion would have to be delayed to February 15 or earlier due to process reasons.
After the transaction is completed, Mercator has proposed to repay its debt of $72 million out of the proceeds it will receive from the sale.
The FPU is currently deployed on the Ebok oil field offshore Nigeria where Oriental is a co-venturer and production sharing partner.
The Virini Prem FPU, a combination of an MOPU and an FSO, was contracted for the Ebok field in 2010. Mercator provided engineering, procurement, construction, installation, and commissioning services for the unit.
The Ebok field was awarded to Oriental Resources in May 2007 by the ExxonMobil / Nigerian National Petroleum Corporation (NNPC) Joint Venture. It is located in OML 67, 50 kilometers offshore in 135 feet of water in Nigeria’s southeastern producing area. The field was discovered by the ExxonMobil/NNPC JV in 1968.
First oil from the field was achieved in 2011 with production around 35,000 boepd and with 508 mmbbls gross unrisked resource potential. Oriental has a 60 percent working interest in the field and its partner in the field is Afren Resources with the remaining 40 percent.
Offshore Energy Today Staff