Singapore-based COSCO Corporation is looking for a buyer for ATP Oil & Gas (UK)’s Octabuoy facility.
COSCO’s Nantong yard ceased work on the project, a semisubmersible dry-tree production platform, which had been due to be used on ATP’s UK North Sea Cheviot field development, after ATP’s former parent company, ATP Oil & Gas Corporation filed for a Chapter 11 bankruptcy protection and the UK subsidiary went into a company voluntary arrangement (CVA).
The CVA is an arrangement to pay creditors over a fixed period. Under the CVA, COSCO has the right to complete or not complete the project and to sell it, while retaining payments from ATP. COSCO says potential buyers have shown interest.
Earlier this year, ATP UK’s new owner, Petroelum Equity, said the “expensive and overdue Octabuoy development concept for the Cheviot field has been shelved.” Petroleum Equity completed a US$133 million deal to buy ATP UK, via its subsidiary Alpha Petroleum, in from Houston-based ATP Oil & Gas Corporation, in February. At the time, founding partner Daniel Reis, said, following the CVA, some $1.2 billion of debts had been written off “leaving ATP UK free of all debts and liabilities to rebuild its business.”
COSCO Nantong says the hull is about 96% complete and the topside module about 47.96% complete.
Cheviot is estimated to contain 200MMbo oil in place, with about 50MMboe 2P reserves, says Petroleum Equity, which is reviewing options for the field, most likely opting for an FPSO, as well as seeking farm-in partners on the 100% owned license.
COSCO has also announced it has secured a contract to build an accommodation barge for a European company. COSCO (Zhoushan) Shipyard Co. will build the DP3 accommodation barge, scheduled for delivery in 3Q 2016.
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