LONDON – Enegi Oil has entered into a strategic partnership with Advanced Buoy Technology (ABT). The two companies plan to apply for offshore assets in the UK North Sea under Britain’s 27th Seaward Licensing Round.
ABT offers buoy technology and expertise for offshore oil and gas fields deemed to be marginal or sub-economic under conventional development methods. The company has a relationship with Wood Group PSN to commercialize and ensure deliverability of unmanned buoy technology.
Enegi hopes the new arrangement will allow it to tap the potential of underexploited offshore assets, while reducing upfront costs.
The partners have identified 58 discovered fields in unlicensed acreage in the UK North Sea which could be suited to development via buoy technology, with potential combined resources of 850 MMbbl of oil and 685 bcf of gas.
They plan to screen these fields further, taking into account geological risk and capital requirements, to select licenses to apply for under the 27th Round.
Both Enegi and ABT will contribute 50% of the costs incurred during bidding in return for an equal stake in any licenses awarded. If ABT’s buoy technology is used, Enegi will pay the company a royalty of 2.5% from revenue generated.