Iona negotiating farm-out of Orlando in North Sea

Offshore staff

CALGARY, CanadaIona Energy expects cost for the Orlando tieback to the Ninian Central platform in the UK northern North Sea during 2015-2016 to be reduced from $215 million to $192 million.

The company has taken advantage of the favorable contracting environment for 2016 oilfield services to secure savings.

Recently the integrated riser hang off structure was loaded onto a supply vessel, and installation is expected to be completed next month.

Orlando remains on track for first production in 4Q 2016.

Last month, Iona announced a proposed restructuring exercise under which it would farm out of Orlando and the Ronan prospect to an unnamed upstream subsidiary of a global energy company.

The deal involves selling 25% of Orlando for a $25.5-million development cost carry plus cash payments to Iona of $10.8 million after first oil.

In addition, the partner would pay full costs of Ronan/Oran technical studies to earn an option of a 66.67% interest in return for funding full costs of an appraisal well. A drill-or-drop decision is due by the end of this year.

08/28/2015

 

Share your news with Offshore at news@offshore-mag.com

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Shell Leverages Data to Transform from Reactive to Predictive Operations

This 6-page report describes how Shell engaged in a massive project with OSIsoft to transform the...

Selection, Use, Care and Maintenance of FR Clothing

For industries operating in an inherently dangerous environment, the importance of selecting the ...

Evolution or Revolution: IT / OT convergence means a world of possibilities

The oil and gas industry is experiencing a rapid paradigm shift in regards to digital transformat...

Predict, Prescribe, Profit: Creating a World that Doesn't Break Down

What are you doing to reduce unplanned downtime at your plant? Equipment breakdowns and process i...