Ithaca revises terms for North Sea Stella floater delivery

Offshore staff

CALGARY, Canada – Ithaca Energy Inc. says the partners in the Greater Stella Area development in the UK central North Sea have entered into an agreement with Petrofac.

This is designed to incentivize timely delivery of the refurbished semisubmersible platform FPF-1, which according to Ithaca is on track from the Remontowa shipyard in Poland by end-March.

Petrofac will continue to incur all costs for the modifications above the contract cost cap.

Ithaca will pay Petrofac $13.7 million in respect of final payment on variations to the contract, although payment will be deferred until three and a half years from first production from the Stella field.

Depending on the timing of the platform leaving the yard, Petrofac will receive a further payment of up to $34 million (also deferred for the same period).

Commissioning operations have started on the platform, including electrical loop checking on the process control and safety systems and equipment package interface testing.

09/28/2015

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