London-listed Nu-Oil and Gas' 50%-owned joint venture, Marginal Field Development Company (MFDevCo), has entered into a strategic collaboration agreement with Marnavi Offshore, including its subsidiary Next Geosolutions.
Marnavi was joining MFDevCo as it established strategic collaborations with companies that had the “key capabilities, experience and market position” required to maximise and deliver opportunities being pursued as part of its gas-to-wire initiative for the cost-effective development of marginal gas fields.
MFDevCo would also seek to collaborate with further large engineering companies to participate in providing an integrated gas-to-wire initiative.
In particular, MFDevCo is finalising agreements with companies with experience of operating gas fields and providers of power generation, compression, electrical and automation systems and expects to be able to confirm such collaborations in due course.
Marnavi Offshore are the operators of a fleet of vessels, for a privately-owned shipping company established in 1910 that provides services in chemical and foodstuff transportation as well as to the offshore and environmental industries.
Under the terms of the collaboration agreement, Marnavi will provide information and support to MFDevCo as required to secure gas to wire projects identified in return for an exclusive first option (right of first refusal) to provide certain equipment and services to those MFDevCo projects, on terms acceptable to both parties.
The initial term of the agreement is two years but both parties are viewing this as the basis for a long-term working relationship with benefits that will increase as working practices are cemented and efficiencies increased going forward.