Malaysian company Yinson and Lagos-based independent First E&P have extended the deadline of an agreement which could see the former provide a floating production, storage and offloading vessel off Nigeria.
Yinson revealed in June it was in negotiations with First E&P via a heads of terms over the potential terms of a bareboat charter for an FPSO which would exploit the Anyala and Madu discoveries in Oil Mining Leases 83 and 85.
Under the original heads of terms agreement, the companies had agreed to “use all reasonable endeavours” to conclude the transaction documents by 30 June this year.
However, Yinson said Thursday it had entered into an amended agreement with First E&P this week to extend the deadline until 24 October.
Yinson said in June the potential charter would run for a minimum of seven years, with options to extend the agreement for up to eight additional years.
The floater would be installed at the Anyala field and be capable of handling 50,000 barrels per day of oil and 120 million cubic feet per day of gas.
It was previously stated first oil from the project was expected in 2019.
The first phase of development involves s two wellhead platforms and a 22 kilometre, 10-inch flowline that will route Madu’s production to the FPSO, where oil will be separated and gas-reinjected into Madu.
The Anyala discovery is located in OML 83 and has estimated in-place resources of 218 million barrels of oil and 175 Bcf of gas and is the core asset in this project. Madu, in OML 85, holds some 89 million barrels of oil and 739 Bcf of gas.
First E&P operates OML 83 and 85 with a 40% interest and is partnered by Nigerian National Petroleum Corporation which holds the remaining 60%.