5th Oct 2016 15:01
LONDON (Alliance News) - Nu-Oil and Gas PLC said Wednesday that its investee company Marginal Field Development Co has entered into a partnership with energy services company Aibel AS in which Aibel will take on the role of partner engineering, procurement and construction contractor for marginal field projects.
Shares in AIM-listed Nu-Oil and Gas more than tripled following the news to 0.395 pence Wednesday afternoon.
Aibel will gain exclusive rights to provide project management and engineering services through the life of Marginal Field Development projects, which look to exploit underdeveloped hydrocarbon resources.
In return Aibel will provide upfront engineering on target projects and engineering services, allowing Marginal Field Development to target fields in deeper water and improve cost efficiency.
The deal will also improve Marginal Field Development's ability to demonstrate, at an early evaluation stage, the technical suitability of the solutions for a given field and the associated costings.
Nigel Burton, chief executive officer of Nu-Oil and Gas, said: "The agreement with Aibel represents a significant advance in the development of the business model. Aibel's investment ensures that resource is available to assess and define projects as part of the acquisition process and in establishing the delivery mechanism. The resource will be applied in assessing a number of already identified target projects."
By Adam Clark; [email protected]
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