ABU DHABI, 31st October, 2016 (WAM) — Mubadala Petroleum has reached an agreement with Petrofac for the modification and extension of contracts related to the FPF-003 floating production, storage and offloading vessel, Jasmine FPSO, which paves the way for the continued extension of the field life of this successful development.
The parties have signed a new ‘life of field’ agreement for the provision of operations and maintenance, O&M, services, which has the potential to run until 2023. An extension to the associated charter lease for the vessel’s Bareboat Charter, BBC, has been signed between Mubadala and PetroFirst Infrastructure Limited.
The new arrangements bring operational efficiency and optimise the scope to reflect current competitive market conditions, and will result in a significant reduction in operating costs for Jasmine, underpinning the continuing commercial viability of this mature field even in the current oil price environment. They also provide for continuity in both offshore facilities and personnel, underpinning the field’s record of safe, reliable and efficient operations.
Ultimate field life depends on the success of continued infill drilling, operational efficiency and commodity prices. The new contracts put in place arrangements that run, potentially, until end 2023 with a six-month termination option incorporated to provide the necessary flexibility.
Commenting on the contract, Musabbeh Al Kaabi, CEO of Mubadala Petroleum, said, “We are pleased to be able to continue our relationship with Petrofac on the Jasmine field. The new arrangements will support the ongoing commerciality of the field as well as providing important continuity in this mature operation.
“Jasmine has been a remarkable success story, having produced over 60 million barrels, several times more than original estimates of recoverable reserves. We believe there is more to come but it is a complex set of reservoirs and a mature asset, so a competitive and flexible approach to operations is vital. Mubadala Petroleum will continue implementing and pursuing best in class practices to maximize value and oil recovery.”