Nu-Oil and Gas PLC – MFDevCo collaboration agreement with Petrofac

Nu-Oil and Gas PLC – MFDevCo collaboration agreement with Petrofac

Nu-Oil is pleased to release the following announcement from Marginal Field Development Company Ltd., the Company’s 50%-owned joint venture.

Petrofac and MFDevCo to join forces to maximise recovery.

Marginal Field Development Company is pleased to announce that it has entered into a collaboration agreement with Petrofac for the pursuit of opportunities in the recovery of stranded gas resources.

Under the agreement, the companies will work together to engineer, deliver and operate gas to wire facilities for the redevelopment and recovery of marginal gas fields, supporting UK clients in their pursuit to maximise economic recovery.

Petrofac, through its Engineering and Production Services business, will provide engineering support, and input to feasibility studies and opportunity screening working with MFDevCo to secure projects that will be developed and delivered using MFDevCo’s gas-to-wire approach, which includes the use of technology supplied by Siemens, as announced on 12th February 2019.

The approach maximises the recovery of stranded gas resources by using gas to generate electrical power on an offshore platform. Turbines installed on the platform convert the gas into electricity that can then be exported to shore in a cheaper and more efficient way than conventional methods; eliminating the expenditure, loss of value and reliance on pipeline networks.

The agreement allows for Petrofac to provide engineering and asset operations services on all gas-to-wire projects identified by MFDevCo, subject to agreeing terms on a case by case basis.  It has an initial term of two years but both parties are viewing this as the basis for a long-term collaboration with benefits that will increase as working practices are cemented and efficiencies increased going forward.

Alison Pegram, Joint Managing Director of Nu-Oil and Managing Director of MFDevCo, commented, “Maximising the economic recovery of gas resources currently considered stranded should be central to the move towards a cleaner energy future and gas to wire offers a means to do this.  Petrofac has extensive experience in the operation, maintenance and management of gas production facilities in the UK so we’re very pleased to have secured their support for our gas to wire initiative as our project negotiations intensify.  We believe this provides the final element required to allow us to move forward and demonstrates that, as a group, we have the capability necessary to deliver and operate these projects.”

Nick Shorten, Managing Director for Petrofac’s Engineering and Production Services business in the Western Hemisphere, said, “At a time when industry is so firmly focused on extending the life of the UK Continental Shelf, we’re delighted to be working with MFDevCo to offer new and existing clients a solution to get more from their gas reserves. By blending our capabilities and expertise, we believe we can provide cost-effective development solutions to unlock the full potential of marginal gas fields within the basin.”

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