Oceaneering International Secures Letter of Intent for E-BT Oil Field Development

Strategic Insights -

Oceaneering International's production contracting division, Oceaneering Production Systems (OPS), has been selected by Soekor (Proprietary) Limited to develop and produce the offshore E-BT oil field and adjacent discoveries. The E-BT oil field is a joint venture between Soekor (80 percent) and Engen (20 percent). OPS has commenced funded engineering work to provide a detailed development cost estimate and confirm the project's feasibility, with an estimated cost of $75 million. Negotiations are underway to finalize a definitive agreement by mid-March 1995, which will then be submitted to the respective Boards of Directors and the Government of South Africa for approval.

Key Takeaways:

  • Oceaneering International's OPS division has received a Letter of Intent from Soekor to develop and produce the E-BT oil field and adjacent discoveries, with an estimated cost of $75 million.
  • The E-BT oil field is a joint venture between Soekor (80 percent) and Engen (20 percent), with Oceaneering International's OPS division commencing funded engineering work to confirm the project's feasibility.
  • Negotiations are in progress to finalize a definitive agreement by mid-March 1995, which will be submitted to the respective Boards of Directors and the Government of South Africa for approval.
  • The development plan for the E-BT field will utilize subsea completed wells producing to a Mobile Offshore Production System (MOPS).
  • Oceaneering International will convert a second-generation semisubmersible into a floating production system (FPS), dubbed the Ocean Developer, for initial use on the field development.
  • Bruce Crager, Vice President and General Manager of OPS, has expressed enthusiasm for the opportunity to partner with Soekor for the development of South Africa's first offshore oil field.
  • Oceaneering International is an advanced applied technology company, providing engineered services and hardware to customers operating in marine, space, and other harsh environments.

Statistics:

  • Estimated development cost: $75 million
  • Estimated time period from approval to first production: seven months
  • Ownership of the E-BT oil field: Soekor (80 percent), Engen (20 percent)
  • Negotiation deadline for definitive agreement: mid-March 1995

Sources:

  • PR Newswire, "Oceaneering International to Develop and Produce Soekor's E-BT Oil Field," January 20, 1995.