Hurricane Energy signs agreement to be used of FPSO at Lancaster field
Hurricane Energy has announced that it's signed Heads of Terms with Bluewater Energy Services (BES) for the utilization of the Aoka Mizu Floating Production Storage and Offloading Vessel (FPSO) on the Company's Lancaster field, West of Shetland.
Hurricane intends to use the Aoka Mizu for the first Production System (EPS) phase of development and can have the correct to increase the contract for up to 10 years. below the Heads of Terms, BES has granted hurricane an exclusive right to enter into fully-termed agreements until november 2017. it's the parties' intention to enter into fully‐termed agreements prior to Hurricane's expected sanction date in mid‐2017.
The Heads of Terms sets the scope of work needed to ensure the Aoka Mizu meets Hurricane's requirements for deployment at Lancaster. additionally, the Heads of Terms sets out the business terms between BES and hurricane, each for the value and terms of the upgrade and life extension work and therefore the subsequent charter rates during the expected life of the contract.
Following the signing of the Heads of Terms, hurricane and BES have commenced a second phase FEED study, that is expected to complete within the second quarter of 2017.