UK-based MFDevCo, or Marginal Field Development Co., has agreed a collaboration deal with Singapore-based jackup drilling rig operator CDPL, a subsidiary of China Offshore Services Ltd. (COSL).
The move will see MFDevCO use CPDL on a "one stop shop" basis, as a partner on its Marginal Field Delivery Consortium, to "secure projects more cost-effectively, earlier and with less upfront capital," says MFDevCo's 50% owner NU-Oil.
Specific details of the commercial arrangement will be agreed on a project by project basis, to allow project-specific timelines and conditions to be accounted for.
However, in general terms, CDPL have committed to offering delayed invoice and payment terms to MFDevCo which could help defer a significant portion of the cost of the rig until after first oil production.
In return, CDPL will have the exclusive first option to provide drilling and other core COSL services on projects that MFDevCo enters into, provided that there is no conflict with existing members of the MFD Consortium and that acceptable terms structured as outlined above can be agreed.
"The commitment made by CDPL will allow MFDevCo in turn to make commitments on certain work required to secure access to projects at an earlier stage than would otherwise be possible and having raised significantly less capital prior to commencement," says Nu Oil.
MFDevCo and CDPL have also agreed to investigate the possibility of additional services (potentially including fabrication) being provided, through CDPL, by sister companies.
Alison Pegram, managing director of MFDevCo, said: "The marginal field projects that we are focusing on are particularly well suited to this type of commercial arrangement, as there is no exploration risk, and CDPL, in this case, are therefore able to defer receipt of certain elements of their revenues with confidence. This agreement demonstrates what is possible, when working with innovative and committed partners, and we will continue to consider all opportunities to work in different ways where doing so advances projects and benefits all those involved."
CDPL is the international branch of COSL for the jackup division and operates a fleet of eight jackups. COSL is a majority-owned subsidiary of the CNOOC Group.
COSL operates and manages 33 jackup rigs, 12 semisubmersible rigs and five modular rigs, two accommodation rigs and six land drilling rigs.
COSL also owns and operates more than 130 working vessels, three oil tankers, five chemical carriers, nine seismic vessels, four surveying vessels, and an array of facilities and equipment for logging, drilling fluids, directional drilling, cementing and well work-over services.