EOCL Enters into Agreement with Owners of Perth Field

· Inks exclusive interim agreement for FPSO engineering study

· Possible charter agreement for an FPSO

· Move in line with Group’s strategy to grow recurrent income base

EOC Limited’s 100% owned subsidiary, Emas Offshore Construction and Production Pte Ltd (“EOCP”) has entered into an exclusive interim agreement with the owners of the Perth Field comprising DEO Petroleum UK Limited, Faroe Petroleum UK Limited and Atlantic Petroleum UK Limited (together the “Perth Group”).

Under the interim agreement, EOCP will perform detailed engineering to further refine the concept established during the FEED (Front End Engineering and Design) studies for a Floating Production Storage and Offloading vessel (“FPSO”) to be deployed in the Perth Field development in Block 15/21a of the UK Continental Shelf. The FPSO and its processing capabilities will be designed to accommodate the several phases of development drilling on the field, and will also feature expanded capacity to handle the anticipated tiebacks from the various third-party stranded fields in the vicinity. Under the terms of the Interim Agreement the parties have substantially agreed commercial and other terms for the Charter Party that they propose to enter on satisfaction of certain conditions including project sanction by the Department of Energy and Climate Change (“DECC”).

Mr Lim Kwee Keong, EOC Limited’s Chief Executive Officer, said: “Our aspiration is that this agreement with the Perth Group will see EOC Limited’s maiden foray into the North Sea, a major area of potential for the deployment of FPSOs. We are confident that EOCP’s experienced professionals will deliver the high-standards necessary for the harsh and demanding operating environment in the North Sea.”

The EOC Group currently owns and operates a fleet of specialised offshore vessels comprising two FPSOs and three offshore construction vessels. Its latest FPSO, the Lewek EMAS which has a storage capacity of about 660,000 barrels of oil and can produce up to 50,000 barrels of oil per day, successfully achieved first oil and commenced its contract with Premier Oil Vietnam Offshore B.V. in Vietnam in October 2011.

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Offshore Nieuws Staff , December 15, 2011; Image: emasoffshore