Offshore staff

SINGAPORE -- Ezra Holdings Ltd. is converting a tanker into an FPSO for a four-year charter valued at more than $265 million.

The tankerMT Kitty Knutsen will be converted to handle 150 MMcf/d of gas and 10,000 b/d of condensate, with 700,000 bbl of liquid storage capacity for production to start in 1Q08.

Ezra holds a letter of intent from a producer to charter the FPSO starting in 2008 and going through 2011, with an option for three more years.

Sources said the Ezra FPSO likely would deploy in Thailand's Arthit field in the Gulf of Thailand for PTT Exploration and Production Public Co. Ltd., which last week announced the acceleration of the field and a signing of an FPSO.

10-09-06