Valeura Energy has secured an extension for the FPF-003 floating production, storage and offloading vessel deployed on its Jasmine oilfield on Block B5/27 offshore Thailand.
The Canadian independent’s charter of the FPSO and Petrofac’s contract for the provision of operating and maintenance services for the floater have both been extended by five years until the end of 2028.
“These contract extensions pave the way for Valeura to pursue further field extensions and infill drilling in the years to come as we continually seek to extend the economic life of the asset,” said chief executive Sean Guest.
Financial details of the extensions were not divulged.
Valeura is also investing US$9 million to refurbish the FPSO, aimed at ensuring its reliability and extending its class certification.
“As we continue to see the potential for further production from the Jasmine oilfield, we have prioritised the maintenance of our infrastructure as a key aspect to ensuring the ongoing safe delivery of value,” Guest said.
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UK contractor Petrofac has been the operations contractor for Jasmine’s FPSO for the past 12 years, taking over from Japanese contractor Modec, which had been responsible for the task from June 2005 — when the field came on stream — until June 2011.
“When the contract was initially awarded, expected field life was due to end in 2016. As a result of our cost-effective approach to operations and extensive life extension projects undertaken in alignment with the client, the agreement was [initially] extended to a ‘life of field’ contract valid until 2023,” Petrofac said earlier.
“We are responsible for delivering an optimised scope to further reduce Jasmine’s operating costs and to create operational efficiencies which will underpin the viability of the mature field development.”
The Jasmine field lies 300 kilometres south of Bangkok in water depths of about 60 metres. It has produced more than 90 million barrels of crude, well in excess of the 7 million barrels expected when the project was sanctioned in 2004.
Petrofac’s assets solutions business chief operating officer, Nick Shorten, said on Thursday: “We are delighted to be continuing our long-held role on the FPF-003 with [Valeura subsidiary] Busrakham Jasmine.
“Throughout our time as service operator, our teams have helped maximise the value and oil recovery from the Jasmine field and celebrated 12 years without a lost time incident and over 500 liftings of oil to export tankers without an environmental incident.”