Enegi, Kongsberg in marginal field initiative

  • Business & Finance

Enegi Oil has announced that Kongsberg Maritime and Braemar ACM Shipbroking have signed Collaboration Agreements with ABT Oil and Gas Ltd. (Enegi’s joint venture with ABTechnology Ltd.) (ABTOG) becoming the first members of the consortium that is targeted at the delivery of the Marginal Field Initiative.

According to the press release, the advent of the consortium will significantly drive forward the delivery of the Marginal Field Initiative

Alan Minty, CEO & Chairman of Enegi, commented: “We continue to believe that the Marginal Field Initiative is a truly global opportunity. The agreements that ABTOG has completed with these major industry players further justifies this belief whilst greatly endorsing and providing further credibility to our initiative.

“We are pleased with this progress as we seek to bring together a consortium of like-minded industry players with the expertise to deliver the Marginal Field Initiative.

“We expect these companies, as well as the addition of further industry players in the near future, to significantly increase the venture’s activity. We look forward to working with our new partners, gaining further projects and taking the Marginal Field Initiative to the next stage of its development.”

James Kidwell, CEO Braemar Shipping Services PLC, said:

“We are happy to be partnering with ABTOG on their Marginal Field Initiative. ABTOG’s business model and strategy is very timely as the industry is looking closely at costs and how to continue to ensure effective economic future production. We believe that this has the potential to be a considerable initiative.

“The ability of ABTOG’s solutions to significantly reduce the opex and capex on oil and gas development projects and the returns that can be gained will in our view undoubtedly appeal to operators and investors alike. We look forward to working with ABTOG and its partners in taking the venture forward and gaining further projects.”

Dean Jennings, Sales Manager, Offshore Production Units, Kongsberg Maritime comments:

“The effect that normally unattended operations could have on operating expense is enormous. We fully endorse ABTOG’s belief that normally unattended operations offer significant potential for the advancement of offshore oil and gas production particularly at this time when the industry is focussed on cost reduction.

“We believe that our expertise and best in class proven remote control technology and monitoring can deliver leading edge development solutions that can maximise recovery from smaller fields given the significant reduction in opex and capex that they provide. We look forward to working with all the partners in delivering this initiative.”

Marginal Field Initiative Consortium

Enegi has been progressing the Marginal Field Initiative, through its joint venture ABTOG, for a number of years. Over that time ABTOG has refined the business model and significantly progressed the project delivery mechanism to ensure that marginal fields, which will remain undeveloped if only using conventional development solutions, can be developed providing returns that justify the investment in these projects, Enegi said in the statement.

The key benefit of this work is that ABTOG has proven that, in many cases, the opex and capex costs of a project can be significantly reduced enabling projects which have been deemed to be uneconomic to be developed to provide considerable returns to the operators and investors alike, the company added.

Through these partnerships the Marginal Field Initiative benefits through the advancement of key areas such as:

– the demonstration of a normally unattended installation which is critical for Opex reductions;
– access to capital;
– expanding global reach to access projects;
– enhancing credibility; and
– direct investment into advancing the initiative.

ABTOG is working on further collaboration agreements including engineering design, project management and facility construction, all based upon the same principles. Completion of these arrangements will create a consortium dedicated to the implementation of marginal field solutions which will allow ABTOG’s visions and business model to become a reality.

Details of Collaborative Agreements

Kongsberg Maritime (KONGSBERG)

KONGSBERG will work with ABTOG to prepare a Proof of Concept based on Kongsberg Maritime’s “Full Picture” integrated systems tailored specifically for marginal fields. This includes all aspects for remote control operation including; monitoring, automation and operation offshore oil and gas production installations to demonstrate, to regulators and operators alike, that operations can be normally unattended.

This work will be completed in two phases. Phase 1 will demonstrate that, using Kongsberg Maritime’s systems and extensive experience of designing and implementing systems to facilitate remote or unattended operations, alongside ABTOG’s knowledge of the regulatory environment and expertise in risk and reliability, normally unattended operations can be achieved.

Along with Phase 1, work will also start on the preparation of an Integrity Case for normally unattended operations, which will form Phase 2. This will be a more detailed technical demonstration of overall performance of the facility, including environmental performance and availability / production uptime, using a risk-based approach to provide the evidence that will be required by regulators and operators that these solutions are technically and economically feasible whilst also being environmentally safe. Each party will be responsible for their own costs.

Kongsberg Maritime delivers products and systems for positioning, navigation and automation to merchant vessels and offshore installations, as well as products and systems for seabed surveying and monitoring, and for fishing vessels and fisheries research.

Braemar ACM

Specifically Braemar ACM’s role will include:

– shipyards negotiations (worldwide);
– being exclusive brokers for all marine equipment required for field development and chartering offtake tankers;
– sourcing financing opportunities and introducing investors;
– sourcing projects for the Marginal Field Initiative through its global network;
– assisting with the sale of future Field production.

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