Norwegian oil and gas company Aker Energy has decided to extend the option period for the long-term charter of Ocean Yield’s FPSO Dhirubhai-1.
On February 12, 2019, Ocean Yield entered into an option agreement with Aker Energy for a long -term bareboat charter of the FPSO Dhirubhai-1. The option period expired on May 1 but was extended until May 30, 2019.
Ocean Yield on Tuesday, May 28 agreed with Aker Energy to further extend the option period until September 1, 2019 against an additional compensation. If the option is exercised, the FPSO will be used for an early-production project offshore Ghana.
Aker Energy is currently evaluating different opportunities for the FPSO at its operated Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana. Aker Energy in late March submitted an integrated plan of Development and Operations to Ghanaian authorities for the DWT/CTP block. The integrated PDO presents an overall plan for a phased development and production of the resources in the DWT/CTP contract area. The phased development plan will start with the development of the Pecan field as a firm phase one, being the largest of several discoveries in the area.
The appraisal drilling campaign at the Ghanaian project was completed in late April. Aker Energy is now working on a revised PDO following scheduled feedback from Ghanaian authorities.
Ocean Yield looking at other options
As there is uncertainty related to a contract for Dhirubhai-1 with Aker Energy, Ocean Yield said it was in parallel pursuing other employment opportunities for the FPSO.
In that respect, Ocean Yield has entered into an agreement to perform a fully paid engineering study for the potential use of the unit on behalf of a non-related independent oil company.
According to Ocean Yield, when reviewing future dividends of Ocean Yield, the prospects for long-term employment of the FPSO will be taken into consideration. If no satisfactory employment can be firmed up within the end of 1Q 2020, an adjustment of the current dividend level of $0.191 per share per quarter will be considered. Based on the expected earnings from the existing portfolio of vessels with long-term charters and the company’s continued growth ambitions, a quarterly dividend of about $0.15 per share as from 1Q 2020 is currently considered to be an appropriate dividend level until a new employment contract is secured for the FPSO.
According to Marine Traffic, the FPSO Dhirubhai-1 is still moored in Sri Lanka.
Source: Offshore Energy