Hurricane Energy has announced that it has signed Heads of Terms with Bluewater Energy Services (BES) for the use 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 Early Production System (EPS) phase of development and will have the right to extend the contract for up to ten years. Under the Heads of Terms, BES has granted Hurricane an exclusive right to enter into fully-termed agreements until November 2017. It is 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 required to ensure the Aoka Mizu meets Hurricane’s requirements for deployment at Lancaster. In addition, the Heads of Terms sets out the commercial terms between BES and Hurricane, both for the cost and terms of the upgrade and life extension work and 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, which is expected to complete in the second quarter of 2017.

Source: www.worldoil.com