MFDevCo discussing partnership with Far East group

Marginal field specialist MFDevCo has entered into a collaboration agreement with Singapore-based CDPL.

Offshore staff

MANCHESTER, UK – Marginal field specialist MFDevCo, in which NU‐Oil and Gas holds a 50% interest, has entered into a collaboration agreement with Singapore-based CDPL.

The aim is to pursue and develop offshore projects more cost‐effectively, earlier and with less upfront capital, according to NU-Oil.

CDPL operates a fleet of eight high-spec jackup drilling rigs and is the international division of Chinese oilfield and geophysical services provider COSL.

Under the proposed agreement, MFDevCo will work on a “one stop shop” basis with CPDL, as a partner in theMarginal Field Delivery (MFD) consortium, with CDPL providing beneficial commercial terms to expedite MFDevCo’s entry into projects and facilitate earlier development.

Details of the commercial arrangement will be agreed on a project-by-project basis, but in general terms, CDPL has committed to offering delayed invoice and payment terms to MFDevCo.

This should defer much of the cost of contracting a rig until after hydrocarbon production has started.

The arrangement should also allow MFDevCo to make commitments on certain work required to secure access to projects at an earlier stage, having raised significantly less capital prior to commencement.

In return, CDPL will have an exclusive first option to provide drilling and other COSL services on MFDevCo’s projects, assuming there is no conflict with existing members of the MFD consortium.

In addition, the two parties have agreed to investigate provision of further services such as fabrication via CDPL or its sister companies.

01/31/2017

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