Premier Oil is set to extend the charter for the Voyageur Spirit FPSO in the North Sea.
The oil company entered into a heads of terms with Teekay in November to extend the employment of the Voyageur Spirit FPSO unit on the Huntington field for one more year.
This means the floating production unit will remain at location until April 2019.
The new contract, for which the final terms and documentation have yet to be agreed, would take effect in April 2018.
According to Teekay, the contract with Premier Oil will include a fixed rate component and an upside component based on the oil production and oil prices.
In the first half of 2017, production from Premier’s UK fields averaged 45.6 kboepd, up from 22.2 kboepd in the first half of 2016.
The Premier-operated Huntington field was the highest net producer in the portfolio with production averaging 15.6 kboepd, up from 8.8 kboepd in the first half of 2016.