Upstream Production Solutions strikes Northern Endeavour FPSO deal
- Business & Finance
Upstream Production Solutions (Upstream PS) signed a contract with Northern Oil and Gas Australia (NOGA) to operate the Northern Endeavour floating production storage and offloading facility (FPSO) in the Timor Sea.
GR Engineering, Upstream PS’ parent company, said on Monday the initial contract for the FPSO operation and maintenance was for three years. The FPSO is moored at the Laminaria-Coralina oil field.
Under the contract, Upstream PS will provide offshore and onshore operations and maintenance services to NOGA. The contract is expected to provide revenue of around $30 million per year, GR Engineering said.
The company said the contract start date remains subject to certain conditions, which expected to be satisfied within a week. The company further stated that Upstream PS has passed the regulatory processes, including Safety Case acceptance, needed to begin the transition period after which they will become the registered operator of the Laminaria-Corallina production assets, including the FPSO.
“We are delighted to be supporting NOGA with its foundation asset. This represents a significant milestone for Upstream PS and a great opportunity to continue expanding our strong offshore capability. This contract also complements our existing portfolio of operations and maintenance, engineering and production assurance services engagements across Australia. We look forward to working for NOGA, and its highly credentialed team”, said Upstream PS Managing Director, Joe Corvetti.
GR Engineering Managing Director, Geoff Jones said: “We are pleased that Upstream PS has secured this opportunity to operate and maintain a significant offshore production asset. The contract award demonstrates the ability of Upstream PS management to grow the business and to play an increasingly important role in GR Engineering’s diversification strategy.”
The Northern Endeavour FPSO has been associated with the Laminaria-Corallina oil field since 1999 and has been acquired by NOGA at the end of April. Laminaria-Corallina is located approximately 550km off the coast of Australia, northwest of Darwin.