• Wednesday, February 28, 2024
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CAMAC Energy signs FPSO contract for offshore Nigerian operations

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United States-based CAMAC Energy says it has signed a long-term contract for the floating, production, storage, and offloading vessel (FPSO) Armada Perdana for its production operations in Nigeria.

The contract provides for an initial term of five years beginning January 1, 2014, with an automatic extension for an additional two years unless terminated by CAMAC with prior notice.

The company plans to utilise the FPSO for its multi-year, high-impact development and production operations in Nigeria, according to a statement posted on its website.

FPSO Armada Perdana has a production capacity of 40,000 barrels of oil per day, and storage capacity of 1.1 million barrels.

According to the company, it currently supports its daily production of about 2,000 barrels of oil and 40 million cubic feet of natural gas from the Oyo Field in oil mining lease (OML) bloc 120 offshore Nigeria.

Segun Omidele, senior vice president of exploration and production, CAMAC, said: “Securing this infrastructure for up to seven years is another milestone towards the growth of CAMAC.”

CAMAC in January had disclosed that a letter of intent (LoI) had been signed regarding terms and conditions of a long-term agreement for the FPSO system, adding that the signed LOI provides for an initial term of five years beginning January 1, 2014, with an automatic extension for an additional term of two years unless terminated by CAMAC with prior notice.

The company, which explores for oil and gas in Nigeria, Kenya and Gambia, last week, said it had received formal approval from the Johannesburg Stock Exchange to commence trading on the Main Board in the oil and gas producers sector.

Its asset portfolio consists of eight licences in the three countries covering an area of 41,000 square kilometres, including production and other projects offshore Nigeria, as well as exploration licences offshore and onshore Kenya, and offshore Gambia.

By: FEMI ASU