Oil and gas service provider Petrofac has teamed up with Bowleven in a strategic alliance to support the proposed development of the Etinde Permit, offshore of Cameroon.
Under the terms of the alliance, the company will provide engineering capability to Euroil, a Cameroonian subsidiary of Bowleven, to support the delivery of a field development plan (FDP) for the first phase of the development.
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Before the approval of the FDP, the company will be remunerated by Euroil for the provision of its service capability.
The risk service arrangements of the alliance require Petrofac to execute the planned development by offering project management, engineering, procurement and construction services.
Petrofac will also invest up to $500m, which will be remunerated through a share of Bowleven’s production revenue, as part of Bowleven’s financial commitment to develop the asset.
Petrofac Integrated Energy Services chief executive, Andy Inglis, said the partnership will help Bowleven to unlock the value of its Etinde Permit.
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By GlobalData"Creating this strategic alliance at an early stage of the project offers Petrofac the opportunity to provide integrated services covering, onshore and offshore facilities development, drilling services and training and operations, alongside the deployment of capital," Inglis added.
Bowleven chief executive, Kevin Hart, said that Petrofac’s experience will enhance Euroil’s strong local presence and capability.
"Our alliance with Petrofac will help deliver first production from our Etinde project, and represents a major step towards our goal of converting resources to reserves in Cameroon," said Hart.
The deal is subject to an agreed FDP and satisfaction to other certain conditions, which include approvals from Bowleven shareholders, co-venturers and government.
