26th Aug 2021 19:24
Vaalco Energy Inc - Texas, US-based hydrocarbon exploration company - Signs binding letter of intent with World Carrier Offshore Services Corp to provide and operate a floating storage & offloading unit at Vaalco's Etame Marin field offshore Gabon for up to eight years.
World Carrier will operate the Cap Diamant, a double-hull crude tanker.
Chief Executive George Maxwell says: "We are very pleased to finalize an agreement with World Carrier that will allow us to sustain our operational excellence and robust financial performance at Etame through 2030.
"Additionally, this new solution costs almost 50% less than the current FPSO solution and will reduce our overall costs by approximately 17% to 20%. Current total field level capital conversion estimates are USD40 to USD50 million gross spread across 2021 and 2022. This capital investment is projected to save approximately USD20 to USD25 million gross per year in operational costs through 2030, giving the project a very attractive payback period of only two to two and a half years."
Current stock price: 175.00 pence
Year-to-date change: up 46%
By Paul McGowan; [email protected]
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