Japanese firms in joint venture to purchase new FPSO for Ghana’s $4.9b TEN project

FPSOFour Japanese firms have formed a joint venture to finance the purchase of a new floating production, storage, and offloading (FPSO) vessel for Ghana’s next big oil project.

The new FPSO will be used at Ghana’s Tweneboa, Enyenra, Ntomme (TEN) oil fields. The development of the TEN project is estimated to cost about $4.9 billion, according to operators at the field.

Japan’s Mitsui & Co., Marubeni Corporation and Mitsui O.S.K. Lines (MOL) all joined MODEC to invest in the new joint venture known as the T.E.N. Ghana MV25 B.V which will be based in the Netherlands.

“Mitsui, Marubeni and MOL invested in T.E.N. Ghana MV25 B.V. (“MV25”), a Dutch company established by MODEC, which will engage in FPSO leasing, operations and maintenance services,” they said in a joint statement September 27, 2013.

According to the agreement, Mitsui & Co. will hold 30% stake in the venture with MODEC and  Marubeni holding 25% each and Mitsui O.S.K taking the remaining 20% stake.

In August this year, MODEC won a Tullow Ghana contract for the supply, charter and lease, operations and maintenance of a new FPSO vessel for the TEN oilfields in the Deepwater Tano area.

This is the second vessel MODEC will provide and operate in Ghana following the FPSO Kwame Nkrumah MV21 for the Jubilee Field development, which was awarded in 2008.

MODEC said its Houston-based SOFEC will design and provide the mooring system, and “MODEC will convert the VLCC Centennial J into an FPSO”.

According to MODEC, the new FPSO which is scheduled for delivery by 2016, will be “capable of handling expected plateau production of 80,000 barrels of oil per day, 170 MM standard cubic feet of gas per day and has storage of 1,700,000 barrels of total fluids”.

The Deepwater Tano contract area is held by Tullow (47.175%) as Operator, Kosmos Energy (17%), Anadarko Petroleum (17%), Sabre Oil & Gas Holdings Ltd, a wholly owned subsidiary of Petro SA (3.825%), and the Ghana National Petroleum Corporation (15%).

By Ekow Quandzie

Leave A Reply

Your email address will not be published.