10th Apr 2014 11:25
LONDON (Alliance News) - Enegi Oil PLC Thursday said the development of the Fyne Field is continuing in line with expectations, with Antrim Energy Inc submitting a new Environmental Statement in March and the company deciding to alter its production plan for the site, while it has also decided to restructure its Advanced Buoy Technology Oil and Gas joint venture.
The oil and gas company with a portfolio of projects in the UK North Sea, the Canadian province of Newfoundland, Ireland and Jordan said the submission of the Environmental Statement to the Department of Energy and Climate Change is a key milestone in the development of the Fyne Field with the next being the submission and approval of the Field Development Plan on which work is advancing towards its deadline of late summer 2014.
The company said that based on the Environmental Statement, it has decided to alter its production plan for the site from a production buoy to its Self-Installing Floating Tower, based on the particular engineering complexities of the Fyne Field and the fact that using the production buoy solution would have required reliance upon the provision of long-lead time, subsea equipment.
Enegi said strong returns which it anticipates from the Fyne Field have not been affected by the change in its development plan.
The company also said that negotiations continue with partners with the aim of providing specific industry endorsement to its ongoing marginal field initiative.
The marginal field initiative focuses on reductions in capital expenditure and operational expenditure through the combination of being unmanned and redeployable, helping to achieve maximum economic recovery.
Enegi said that it has now become evident that its joint venture in the programme, Advanced Buoy Technology Oil and Gas needs to be restructured to allow potential partners to become involved without affecting their own business model and risk profile.
The company said the joint venture seeks to garner returns from both oil and gas production and services, which limits the venture's opportunities with companies which focus on one or the other factor.
As such, the venture now intends to split into two subsidiary companies in order to maximise its potential gains from future partners on the programme.
Enegi Oil shares were down 0.1% to 6.62 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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