Baker Hughes GE (BHGE) has been awarded contracts worth £3million from i3 Energy for two upcoming North Sea prospects.
The firm will supply oilfield services and equipment for i3’s summer drilling programme for its Liberator and Serenity prospects in the outer Moray Firth.
BHGE will also carry out work on the Phase 1 development at Liberator next year.
As part of the award, BHGE has agreed that the contract fees will not become payable until i3 has received its first sales revenues from Liberator Phase 1.
Earlier this year i3 hired the Borgland Dolphin rig to drill a pilot production well at Liberator, as well as appraisal wells on the Liberator West extension and nearby Serenity prospect.
The 94-day campaign is expected to start in July or August.
i3, based in Westhill, Aberdeenshire, believes its portfolio of wholly-owned assets is capable of producing about 200 million barrels of oil equivalent.
Chief executive Majid Shafiq said: “We are very pleased to announce that we will be awarding these multi-million dollar oilfield service and equipment contracts to BHGE.
“We appreciate the confidence BHGE has shown in the quality of the Liberator oilfield in agreeing to receive payments from first oil revenues.
“This transaction will enable us to maximize the allocation of capital resources and contingency towards our 2019 drilling activities, and we look forward to welcoming BHGE as a partner as we establish a mutually beneficial long-term relationship to unlock the value in our assets.”
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