Offshore services provider Bumi Armada Berhad will provide the floating production, storage and offloading vessel for the giant Kraken North Sea field after confirming an £850million deal.
The eight-year deal will see Bumi provide a bareboat charter for the EnQuest project, but could be extended for another 17 years.
And Bumi chief executive Hassan Basma said the company hoped the venture would the start of a deeper move into the North Sea following this debut deal.
“The Kraken oil field development is one of the largest new oil fields in the UK sector of the North Sea, and amongst the largest investment announced for this sector in 2013,” he said.
“We have already commenced work on the project, following the execution of the previously announced Letter of Interim Agreement and we look forward to working closely with our clients and value chain suppliers to successfully deliver our first North Sea FPSO to the Kraken oil field in 2016.
“We certainly hope that this would be the first of more projects to come.”
A former ice-class tanker will be converted into the FPSO for the field, with a storage capacity of up to 600,000 barrels of oil, handling production of around 80,000 barrels per day, along with 20 million square foot of gas per day.
EnQuest was given the go-ahead to develop the East of Shetland field last month, with the project – due to come on stream by 2017 – set to cost more than £4billion.
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