MFDevCo in collaboration with Marnavi for development of marginal gas fields
London-listed Nu-Oil and Gas’ 50%-owned joint venture, Marginal Field Development Company (MFDevCo), has entered into a strategic collaboration agreement with Marnavi Offshore, including its subsidiary Next Geosolutions.
Nu-Oil explained on Friday that Marnavi joins MFDevCo as it establishes strategic collaborations with companies that have the key capabilities, experience and market position required to maximize and deliver opportunities being pursued as part of its gas to wire initiative for the cost-effective development of marginal gas fields.
MFDevCo will also seek to collaborate with further large engineering companies to participate in providing an integrated gas to wire initiative. In particular, MFDevCo is finalizing agreements with companies with experience of operating gas fields and providers of power generation, compression, electrical and automation systems and expects to be able to confirm such collaborations in due course.
Maximizing recovery of stranded fields
This initiative is a part of MFDevCo’s overall strategy to maximize the recovery and value of resources within fields currently considered stranded or marginal, for whatever reason.
Nu-Oil said that the characteristics and requirements of gas development projects differ from those of oil development projects and consideration therefore has to be given to adopting a different approach. Gas, however, represents a relatively clean energy source that can provide a vital contribution to energy security as well as assisting in the transition towards more renewable energy sources.
Marnavi Offshore is the operator of a fleet of vessels that provides services in chemical and foodstuff transportation as well as to the offshore and environmental industries. According to Nu-Oil, Marnavi is able to assist MFDevCo not only through provision of vessels required to support all phases of its projects, from pre-installation through commissioning and operations and finally in decommissioning, but also with other services it is able to bring in.
This includes support from Next Geosolutions, a subsidiary of Marnavi Group providing geoscience and engineering support services including seabed mapping and burial assessment services, asset inspection and integrity management, intervention and remedial, as well as cable laying, leasing and inspection, which are critical in minimizing risks and maximizing returns to investors.
Under the terms of the collaboration agreement, Marnavi will provide information and support to MFDevCo as required to secure gas to wire projects identified in return for an exclusive first option (right of first refusal) to provide certain equipment and services to those MFDevCo projects, on terms acceptable to both parties. The commitment that Marnavi are making to project evaluation and design is central to MFDevCo’s final confirmation of the technical and economic feasibility of selected projects and provides the independent verification required to demonstrate deliverability to both partners and investors.
The initial term of the agreement is two years but both parties are viewing this as the basis for a long-term working relationship.
Alison Pegram, Joint Managing Director Elect of Nu-Oil and Managing Director of MFDevCo, commented, “We have always been committed to maximizing the economic recovery of resources currently considered stranded by whatever means is appropriate and are very pleased to have received support from Marnavi and from other major companies with key capabilities and experience with whom we are currently speaking in our latest initiative to achieve just that. There are compelling reasons to adopt this approach on the projects we are currently pursuing and we are working hard to conclude the final elements that will allow us to move forward to delivery.”
Attilio Ievoli and Kevin Morrin, as Business Development Manager, Marnavi Offshore (UK Office), commented, “We see this as a very proactive approach in securing economical energy solutions from existing infrastructure that has been overlooked by the current market and look forward to supporting MFDevCo in achieving this goal.”