TIDMNUOG
RNS Number : 1455V
Nu-Oil and Gas PLC
26 January 2017
NU-OIL AND GAS PLC
AIM ticker: 'NUOG'
26th January 2017
NU-Oil and Gas plc
("NU-Oil" or "the Company")
COSL Drilling Pan Pacific Limited signs up to secure
projects
Highlights
-- Marginal Field Development Company (MFDevCo) Ltd ("MFDevCo"),
in which NU-Oil holds a 50 per cent. interest, executes a
collaboration agreement with COSL Drilling Pan Pacific Limited
("CDPL"), a major drilling contractor, to work with MFDevCo to
secure marginal field projects
-- The agreement envisages delayed invoicing and payment terms
that, in certain circumstances, will delay a significant portion of
the cost of drilling until after the production of hydrocarbons
-- CDPL is the international branch of China Oilfield Services
Limited ("COSL"), in turn, a majority owned subsidiary of China
National Offshore Oil Corporation ("CNOOC Group")
-- Collaboration on additional services being discussed with sister companies of CDPL
NU-Oil is pleased to announce that MFDevCo, the company in which
NU-Oil holds a 50 per cent. interest as part of its strategy to
generate a portfolio of assets, has entered into a collaboration
agreement with CDPL with the objective of securing projects more
cost-effectively, earlier and with less upfront capital.
CDPL, headquartered in Singapore, operates a fleet of 8 high
specification jack-up drilling rigs and is the international branch
of COSL, the leading integrated oilfield services provider in the
offshore China market with core business segments including
geophysical services, drilling services, well services, marine
support and transportation services. The collaboration agreement
allows MFDevCo to work on a 'one stop shop' basis with CPDL, as a
partner in the Marginal Field Delivery Consortium ("MFD
Consortium"), to access the entire range of services and increase
efficiencies, with CDPL offering beneficial commercial terms that
should expedite MFDevCo's entry into projects and facilitate
earlier development.
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, in certain circumstances and on terms mutually
agreed, will have the effect of deferring a significant portion of
the cost of the rig until after hydrocarbon production has
commenced. In other respects, the arrangement will reflect normal
industry terms, but 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.
In return for the commitment they are making, 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. This
therefore forms the basis for a long term working relationship with
the potential for increasing efficiencies in service provision and
working practices going forward.
In addition, MFDevCo and CDPL have agreed to investigate the
possibility of additional services (potentially including
fabrication) being provided, through CDPL, by sister companies,
where such services can be offered on competitive terms and no
conflict exists with other members of the MFD Consortium.
Alison Pegram, Managing Director of MFDevCo, commented, "Signing
this agreement with CDPL is a major milestone for us as we move to
complete negotiations on our initial target projects. 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."
Dr. Nigel Burton, CEO of Nu-Oil and Gas Plc, commented, "We are
delighted that MFDevCo has entered into this agreement with CDPL.
It further demonstrates to operators MFDevCo's capability to create
the complete solution which is necessary to secure projects."
COSL Drilling Pan Pacific Limited
CDPL is the international branch of COSL for the Jack-up
Division and operates a fleet of 8 high specification jack-ups.
COSL is the leading integrated oilfield services provider in the
Asian offshore market and a majority-owned subsidiary of the CNOOC
Group. Its services cover each phase of offshore oil and gas
exploration, development and production. Its four core business
segments are geophysical services, drilling services, well
services, and marine support and transportation services.
COSL as a whole possesses the largest fleet of offshore oilfield
services facilities in China. To date, COSL operates and manages
thirty-three jack-up rigs, twelve semi-submersible rigs and five
modular rigs, 2 accommodation rigs and 6 land drilling rigs.
In addition, COSL also owns and operates the largest and most
diverse fleet in offshore China, including more than 130 working
vessels, 3 oil tankers, 5 chemical carriers, 9 seismic vessels, 4
surveying vessels, and a vast array of modern facilities and
intrinsically developed and patented equipment for logging,
drilling fluids, directional drilling, cementing and well work-over
services, including FCT, FET, LWD and ERSC.
Enquiries:
NU-Oil and Gas plc
Alan Minty, Executive Chairman Tel: +44 161 817 7460
Nigel Burton, CEO Tel: +44 7785 234447
Strand Hanson Limited
Rory Murphy/Ritchie Balmer Tel: +44 20 7409 3494
Beaufort Securities Limited Tel: +44 20 7382 8300
Jon Belliss
Elliot Hance
St Brides Partners Limited Tel: +44 20 7236 1177
Elisabeth Cowell
Lottie Brocklehurst
www.nu-oilandgas.com
Note to Editors:
NU-Oil and Gas plc is an independent oil and gas
company whose strategy is to build a diverse portfolio
of assets with a strong emphasis on acquiring interests
in stranded and marginal fields.
These fields are low risk highly-appraised projects
and consequently the Company's entry cost will
be low. NU-Oil will look to develop these assets
utilising solutions delivered by Marginal Field
Development Company (MFDevCo) and the MFD Consortium,
which can significantly improve the development
economics of a project. This is also expected to
enable the early booking of reserves.
MFDevCo is a company focused on identification,
evaluation and development of marginal offshore
oil and gas fields through the development of technology
that licence holders need to unlock the, potentially,
significant value within such marginal assets.
MFDevCo leads a consortium of specialist companies
(the MFD Consortium) which collaborate to develop
marginal fields.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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January 26, 2017 02:00 ET (07:00 GMT)
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