TIDMNUOG
RNS Number : 6797C
Nu-Oil and Gas PLC
19 June 2019
19 June 2019
Nu-Oil and Gas plc
("Nu-Oil" or "the Company")
Nu-Oil is pleased to note the following announcement from
Marginal Field Development Company Ltd., the Company's 50%-owned
joint venture:
Petrofac and MFDevCo join forces to maximise recovery
Marginal Field Development Company ("MFDevCo") is pleased to
announce that it has entered into a collaboration agreement with
Petrofac for the pursuit of opportunities in the recovery of
stranded gas resources.
Under the agreement, the companies will work together to
engineer, deliver and operate gas to wire facilities for the
redevelopment and recovery of marginal gas fields, supporting UK
clients in their pursuit to maximise economic recovery.
Petrofac, through its Engineering and Production Services
business, will provide engineering support, and input to
feasibility studies and opportunity screening working with MFDevCo
to secure projects that will be developed and delivered using
MFDevCo's gas-to-wire approach, which includes the use of
technology supplied by Siemens, as announced on 12(th) February
2019.
The approach maximises the recovery of stranded gas resources by
using gas to generate electrical power on an offshore platform.
Turbines installed on the platform convert the gas into electricity
that can then be exported to shore in a cheaper and more efficient
way than conventional methods; eliminating the expenditure, loss of
value and reliance on pipeline networks.
The agreement allows for Petrofac to provide engineering and
asset operations services on all gas-to-wire projects identified by
MFDevCo, subject to agreeing terms on a case by case basis. It has
an initial term of two years but both parties are viewing this as
the basis for a long-term collaboration with benefits that will
increase as working practices are cemented and efficiencies
increased going forward.
Alison Pegram, Joint Managing Director of Nu-Oil and Managing
Director of MFDevCo, commented, "Maximising the economic recovery
of gas resources currently considered stranded should be central to
the move towards a cleaner energy future and gas to wire offers a
means to do this. Petrofac has extensive experience in the
operation, maintenance and management of gas production facilities
in the UK so we're very pleased to have secured their support for
our gas to wire initiative as our project negotiations intensify.
We believe this provides the final element required to allow us to
move forward and demonstrates that, as a group, we have the
capability necessary to deliver and operate these projects."
Nick Shorten, Managing Director for Petrofac's Engineering and
Production Services business in the Western Hemisphere, said, "At a
time when industry is so firmly focused on extending the life of
the UK Continental Shelf, we're delighted to be working with
MFDevCo to offer new and existing clients a solution to get more
from their gas reserves. By blending our capabilities and
expertise, we believe we can provide cost-effective development
solutions to unlock the full potential of marginal gas fields
within the basin."
Enquiries
Nu-Oil and Gas plc
Simon Bygrave Tel: +44 (0)161 817 7460
Investor Relations & Communications
Strand Hanson Limited Tel: +44 (0)20 7409 3494
Rory Murphy/Ritchie Balmer/Jack
Botros
Novum Securities Limited Tel: +44 (0) 20 7399 9425
Jon Belliss
Notes
Marginal Field Development Company Ltd
MFDevCo focuses on maximising recovery from the vast,
undeveloped hydrocarbon resources contained within marginal fields
worldwide, utilising appropriate re-deployable solutions to
transform these undervalued assets. MFDevCo seeks to manage the
entire lifecycle of marginal field projects from opportunity
screening, suitability assessment and financing through engineering
to production and decommissioning. www.mfdevco.com
Petrofac
Petrofac is a leading international service provider to the oil
and gas production and processing industry, with a diverse client
portfolio including many of the world's leading integrated,
independent and national oil and gas companies. Petrofac is quoted
on the London Stock Exchange (symbol: PFC).
Petrofac designs and builds oil and gas facilities; operates,
maintains and manages facilities and trains personnel; enhances
production; and, where it can leverage its service capability,
develops and co-invests in upstream and infrastructure projects.
Petrofac's range of services meets its clients' needs across the
full life cycle of oil and gas assets.
With around 11,500 employees, Petrofac operates out of seven
strategically located operational centres, in Aberdeen, Sharjah,
Abu Dhabi, Woking, Chennai, Mumbai and Kuala Lumpur and has a
further 24 offices worldwide. www.petrofac.com
Gas to Wire
Gas to wire offers an alternative method of economically
recovering offshore gas resources. Rather than developing and
exporting gas using traditional methods, gas is converted to power
using gas turbine generators located on an offshore platform and
the power is transmitted to shore using subsea power cables.
Benefits of recovering gas resources using this method for the
Company and MFDevCo include:
-- Value Adding: Low-cost entry to low-risk production with the
possibility to further extend revenue through hydrokinetic
energy;
-- Low capital requirement: CAPEX reduced through utilisation of
existing facilities and infrastructure, low entry cost
expected;
-- Access to reliable production: Development of late-life gas fields reduces subsurface risk;
-- Minimising price risk: Natural arbitrage between hydrocarbon
and power generation, which reduces the exposure to price risk
associated with gas markets
-- Accelerated time to production: Utilising existing facility
& infrastructure reduces cost & lead-time for fabrication
& construction; use proven technology to convert gas to wire,
transported to the grid by hooking into live network;
-- Attractive & complementary market: Immediate
opportunities in local markets, licence holders have commercial
imperative to defer decommissioning
-- Regulatory support: significant contribution to objectives of
delivering energy security, deferring decommissioning costs and
maximising economic recover; gas to wire initiatives supported by
UK's Oil and Gas Authority.
The Oil and Gas Authority's "Gas to Wire report: UK SNS and EIS"
details their assessment of the opportunities for the use of such
methods to recover stranded gas resources and the benefits for the
UK.
https://www.ogauthority.co.uk/news-publications/publications/2018/gas-to-wire-report-uk-sns-and-eis/
Disclaimer
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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