Lower rate for Huntington FPSO as Premier, Teekay talk further extension
- Business & Finance
Teekay Offshore has won a contract extension from Premier Oil for the Voyageur Spirit FPSO, operating on the Huntington field in the UK North Sea, but the extension includes a lower fixed charter rate.
In its 1Q 2018 update on Thursday, Teekay said it had signed the previously-announced contract extension with Premier Oil in April to extend the employment of the Voyageur Spirit FPSO on the Huntington field to at least April 2019.
The new contract, which took effect in April, includes a lower fixed charter rate component plus a component based on oil production and oil price, said Teekay.
The Huntington development consists of four producer wells and two water injectors tied back to the Voyageur Spirit FPSO. Oil is exported through offshore loading to shuttle tankers while gas is exported via the CATS System and redelivered at the Teesside Gas Terminal where it is sold.
In a separate announcement on Wednesday, Premier said that Huntington averaged 8.1 kboepd during the first quarter of 2018, reflecting natural decline and a planned shutdown which was extended by the adverse weather conditions in February.
Premier added it was considering converting an obsolete production well into a water injection well to further improve recovery from the field.
At the same time, Premier has started discussions with Teekay with a view to extending the FPSO lease beyond April 2019.
Offshore Energy Today Staff