Fossil Energy – FPSO
UK-based oil and gas company Hurricane Energy has signed a contract with Bluewater, the owner of the Aoka Mizu FPSO, for an extension to the bareboat charter of the vessel beyond the current expiry date of June 4, 2022.
Hurricane Energy said that the extension covers the remaining economic life of the Lancaster field. Also, either party can give six months’ notice to terminate the charter and the existing day rate and tariff for the vessel remains at $75,000 per day and 8 percent of revenue, respectively.
The company also agreed to establish a secured deposit account of up to $18.7 million for the benefit of Bluewater to cover the costs associated with the day rate for the six-month notice period and decommissioning in respect of the vessel.
In addition to the charter extension, Hurricane Energy has negotiated with a facility with BP Oil International, the purchaser of its crude oil, that will allow for cash to be advanced ahead of a lifting.
This provides the ability to create more frequent cash receipts and assist with the company’s working capital. The facility incurs a financing fee that is only payable if Hurricane Energy uses it.
