Did anyone read the report in the international oil and gas newsletter "upstream" dated 5 Dec 2014, which might go some way to understand the slump in the OXX price? If correct it's more illuminating than the later OXX Strategic Review report.
"Oil price woes delay Ophir contracts
By Ruth Chen from Singapore
05 December 2014 00:00 GMT
AUSTRALIAN-Malaysian joint venture Ophir Production has still not awarded the platform and floating storage and offloading vessel contracts for its Ophir oilfield off Malaysia to preferred contractor SapuraKencana, writes Ruth Chen.
The delay is blamed on the current low oil price and Petronas’ reluctance to proceed with projects.
SapuraKencana is the preferred contractor to land the engineering, procurement and construction contract for a wellhead platform and to provide an FSO for the Ophir field development.
“If there is no immediate go-ahead, first oil will slip until February 2016 taking into account the installation of the wellhead platform, which will have to take place after the monsoon season,” a company official said.
He added that “it is most unfortunate that we are caught in this situation with oil prices at this level now and having to slow down smaller-scale marginal oilfield projects such as ours (Ophir)”.
The Ophir FSO will have a storage capacity of 300,000 barrels of crude and up to three modules, including a flare tower and two separation and chemical skid units. The processing capacity is about 15,000 barrels per day of oil.
Delivery of the floater is scheduled for 10 months after contract award and the FSO was originally scheduled to arrive on location in August 2015.
The FSO charter term remains under negotiation. This will either be a firm three-year charter with one-year extension options up to a total of six years or a firm five-year charter.
In June 2014, Petronas awarded the small field risk service contract to Ophir Production, a joint venture between Octanex on 50%, Scomi on 30% and Petronas subsidiary Vestigo Petroleum on 20%."
PKO Price at posting:
0.2¢ Sentiment: None Disclosure: Not Held
OXX Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
