DOF Subsea has won a further six-month extension for its Skandi Seven vessel in Africa, the company has reported.
The project will continue to use Skandi Seven for “integrated FSV services, project management, engineering, procurement and logistical services within deepwater construction and maintenance of existing subsea infrastructure”, it said.
In September 2020, DOF said the vessel would be working in Angola. It is active on Eni’s Block 15/06.
Last year, the company said the Skandi Seven would be working for at least 303 firm days, with options for 365 days.
While the contract award will be welcome, DOF faces financial discussions. In its first quarter report, the company said it was “dependent on continued standstill agreements with its creditors until a long-term financial solution is agreed to maintain as going concern”.
At the end of June, it announced an extension of its standstill agreements covering 88% of its secured debt. This will run until August 31. It also sought the possibility of extending this to the end of September, with approval from an ad hoc committee of bondholders.
This would allow it to hold talks with lenders on “a long-term financial restructuring of the DOF group”.
There are challenges to the group’s plans, but Eni’s activities in Angola appear to be a positive.
The Italian company, in mid-August, said it had started producing from its Cuica field. This is in Block 15/06. It reached first oil just four months after discovery.
The field is connected to the Armada Olombendo floating producing, storage and offloading (FPSO) vessel.
The operator plans to connect the Cabaça North field to the FPSO in the fourth quarter.