Enegi Oil has agreed a Memorandum of Understanding with ABT Oil and Gas (ABTOG) and Wood Group PSN (WGPSN) for the investment into marginal field initiatives.
Enegi Oil, which holds a 50% interest in ABTOG, confirmed the move today.
The venture, currently dubbed Marginal Field Development, will be renamed and re-positioned as an upstream oil and gas technology, project management and engineering firm focused on recovering marginal and stranded hydrocarbon fields.
WGPSN will provide up to £5million on a deferred payment basis to allow the company to complete field development plans under the agreed terms.
Dave Stewart, WGPSN UK’s managing director, heralded the move an “exciting new development”.
He said: “This is an exciting new development for Wood Group PSN, aimed at maximising recovery of marginal field reserves in the UKCS, reducing running costs for operators and making previously sub-economic fields financially viable.”
Alan Minty, chief executive of independent Enegi Oil, added: “The establishment of the Marginal Field Development Company is a logical progression from the strategic partnership which existed for three years. During that period, the business model has been refined and proven, projects and licenses have been acquired and it has become imperative to demonstrate that ABTOG has a ‘delivery partner’ for its projects. This is the purpose of establishing the Marginal Field Development Company and we are pleased to have achieved that with the investment from WGPSN.”
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