TIDMNUOG
RNS Number : 0700O
Nu-Oil and Gas PLC
25 January 2019
25 January 2019
Nu-Oil and Gas plc
("Nu-Oil" or "the Company")
Strategic Collaborations to Support MFDevCo in Development of
Marginal Gas Fields
The Company is pleased to announce that Marginal Field
Development Company ("MFDevCo"), the Company's 50%-owned joint
venture, has entered into a collaboration agreement with Marnavi
Offshore ("Marnavi") (including its subsidiary Next Geosolutions).
Marnavi joins MFDevCo as it establishes strategic collaborations
with companies that have the key capabilities, experience and
market position required to maximise and deliver opportunities
being pursued as part of its gas to wire initiative for the
cost-effective development of marginal gas fields. MFDevCo will
also seek to collaborate with further large engineering companies
to participate in providing an integrated gas to wire initiative.
In particular, MFDevCo is finalising agreements with companies with
experience of operating gas fields and providers of power
generation, compression, electrical and automation systems and
expects to be able to confirm such collaborations in due
course.
This initiative is a logical and integral yet discrete part of
MFDevCo's overall strategy to maximise the recovery and value of
resources within fields currently considered stranded or marginal,
for whatever reason. The characteristics and requirements of gas
development projects differ from those of oil development projects
and consideration therefore has to be given to adopting a different
approach. Gas, however, represents a relatively clean energy source
that can provide a vital contribution to energy security as well as
assisting in the transition towards more renewable energy
sources.
Marnavi Offshore are the operators of a fleet of vessels, for a
privately-owned shipping company established in 1910 that provides
services in chemical and foodstuff transportation as well as to the
offshore and environmental industries. Marnavi is able to assist
MFDevCo not only through provision of vessels required to support
all phases of its projects, from pre-installation through
commissioning and operations and finally in decommissioning, but
also with other services it is able to bring in through its strong
established relationships. This includes support from Next
Geosolutions, a subsidiary of Marnavi Group providing geoscience
and engineering support services including seabed mapping and
burial assessment services, asset inspection and integrity
management, intervention and remedial, as well as cable laying,
leasing and inspection, which are critical in minimising risks and
maximising returns to investors.
Under the terms of the collaboration agreement Marnavi will
provide information and support to MFDevCo as required to secure
gas to wire projects identified in return for an exclusive first
option (right of first refusal) to provide certain equipment and
services to those MFDevCo projects, on terms acceptable to both
parties. The commitment that Marnavi are making to project
evaluation and design is central to MFDevCo's final confirmation of
the technical and economic feasibility of selected projects and
provides the independent verification required to demonstrate
deliverability to both partners and investors.
The initial term of the agreement is two years but both parties
are viewing this as the basis for a long-term working relationship
with benefits that will increase as working practices are cemented
and efficiencies increased going forward.
Alison Pegram, Joint Managing Director Elect of Nu-Oil and
Managing Director of MFDevCo, commented, "We have always been
committed to maximising the economic recovery of resources
currently considered stranded by whatever means is appropriate and
are very pleased to have received support from Marnavi and from
other major companies with key capabilities and experience with
whom we are currently speaking in our latest initiative to achieve
just that. There are compelling reasons to adopt this approach on
the projects we are currently pursuing and we are working hard to
conclude the final elements that will allow us to move forward to
delivery."
Attilio Ievoli and Kevin Morrin, as Business Development
Manager, Marnavi Offshore (UK Office), commented, "We see this as a
very proactive approach in securing economical energy solutions
from existing infrastructure that has been overlooked by the
current market and look forward to supporting MFDevCo in achieving
this goal."
Enquiries
Nu-Oil and Gas plc
Simon Bygrave Tel: +44 (0)161 817 7460
Investor Relations & Communications
Strand Hanson Limited Tel: +44 (0)20 7409 3494
Rory Murphy/Ritchie Balmer/Jack
Botros
Novum Securities Limited Tel: +44 (0) 20 7399 9425
Jon Belliss
Notes
Marginal Field Delivery Company
Marginal Field Delivery Company ("MFDevCo") focuses on
maximising recovery from the vast, undeveloped hydrocarbon
resources contained within marginal fields worldwide, utilising
appropriate re-deployable solutions to transform these undervalued
assets. MFDevCo seeks to manage the entire lifecycle of marginal
field projects from opportunity screening, suitability assessment
and financing through engineering to production and
decommissioning.
www.mfdevco.com
Marnavi Offshore
Marnavi Offshore are the operators of a recently constructed
fleet of offshore vessels incorporating AHTSs, MPSVs, European
built with the latest DP2 Station Keeping capabilities, AHC Cranes
(where applicable) and fully SPS compliant meeting the latest
industry standards for offshore vessels.
www.marnavi.it
Next Geosolutions
Next Geosolutions ("NEXT") is an international turn-key
geoscience and engineering service provider operating in the
energy, infrastructure and utilities markets.
NEXT is an independent, QHSE mindful and technology driven
contractor capable of providing integrated services, both on land
and at sea, to support the entire lifetime of projects and assets,
by providing their customers with high quality, cost-efficient
solutions by leveraging in-house know-how, assets and resources and
by applying a combination of state-of-the-art technology and
innovation.
Established in 2006 as Oceanix and incorporated into the NG
group in 2015, NEXT is already recognised as a leading contractor
in the industry with offices in the UK, Italy, UAE and further
geographical expansion planned in 2019 and 2020.
www.nextgeosolutions.com
Gas to Wire
Gas to wire offers an alternative method of economically
recovering offshore gas resources. Rather than developing and
exporting gas using traditional methods, gas is converted to power
using gas turbine generators located on an offshore platform and
the power is transmitted to shore using subsea power cables.
Benefits of recovering gas resources using this method for the
Company and MFDevCo include:
-- Value Adding: Low-cost entry to low-risk production with the
possibility to further extend revenue through hydrokinetic
energy;
-- Low capital requirement: CAPEX reduced through utilisation of
existing facilities and infrastructure, low entry cost
expected;
-- Access to reliable production: Development of late-life gas fields reduces subsurface risk;
-- Minimising price risk: Natural arbitrage between hydrocarbon
and power generation, which reduces the exposure to price risk
associated with gas markets
-- Accelerated time to production: Utilising existing facility
& infrastructure reduces cost & lead-time for fabrication
& construction; use proven technology to convert gas to wire,
transported to the grid by hooking into live network;
-- Attractive & complementary market: Immediate
opportunities in local markets, licence holders have commercial
imperative to defer decommissioning
-- Regulatory support: significant contribution to objectives of
delivering energy security, deferring decommissioning costs and
maximising economic recover; gas to wire initiatives supported by
UK's Oil and Gas Authority.
The Oil and Gas Authority's "Gas to Wire report: UK SNS and EIS"
details their assessment of the opportunities for the use of such
methods to recovery stranded gas resources and the benefits for the
UK.
https://www.ogauthority.co.uk/news-publications/publications/2018/gas-to-wire-report-uk-sns-and-eis/
Disclaimer
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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