11th Mar 2014 12:50
LONDON (Alliance News) - Enegi Oil PLC Tuesday said it, along with Advanced Buoy Technology Ltd, have agreed to extend an option agreement allowing Wood Group PSN, a division of John Wood Group PLC, the possibility to expand its participation in the development of a marginal field initiative.
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 option agreement now has been extended to March 31.
The parties entered into a negotiation phase in December to possibly lead to Wood Group receiving an expanded role in the marginal field initiative.
Wood Group PSN is a strategic partner of ABT in the commercial exploitation of unmanned buoy technology which allows Wood Group PSN exclusivity in the provision of a number of engineering services.
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 noted that key regulators and governments are keen to maximise recovery of hydrocarbons from mature basins, particularly in the UK Continental Shelf as sizes diminish, production rates decline, infrastructure is decommissioned, and costs increase.
The company added that in order to maximise the opportunities to develop marginal fields, Enegi and ABT are reviewing its joint venture and an announcement is expected to be made on this in due course.
Enegi shares were up 1.6% to 8.00 pence, while John Wood Group shares were down 0.7% to 743.00 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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