GODALMING, UK – Hurricane Energy has signed an extension with Bluewater Energy of the bareboat charter for the Aoka Mizu FPSO.
This will keep the vessel in service at the Lancaster oilfield west of Shetland in UK waters beyond the current expiry date of June 4, 2022.
Under the agreement, the charter has been extended to cover the remaining economic life of the Lancaster field, although either party can give six months' notice to terminate the charter.
The existing day rate and tariff will remain at $75,000/d and 8% of revenue respectively. And Hurricane has agreed to establish a secured deposit account of up to $18.7 million for Bluewater to cover costs associated with the day rate for the six-month notice period and future decommissioning in respect of the vessel.
In addition, Hurricane has negotiated with BP Oil International, which purchases Lancaster’s oil, a facility that will allow for cash to be advanced ahead of a lifting.