The production division of Ezra Holdings Limited (‘Ezra’, the ‘Group’), EOC Limited (EOC), has secured via EOC’s Malaysian agent, Larizz Petroleum Services Sdn Bhd, its first award from Hess Exploration and Production Malaysia B.V. (‘Hess E&P Malaysia’) for the charter of the Group’s Floating, Production, Storage and Offloading (FPSO) vessel, the Lewek Arunothai.
EOC is the 45.7% owned associate company and production division (EMAS Production) of the Group.
Hess E&P Malaysia, is part of a global energy group that is engaged in oil & gas (O&G) exploration and production as well as refining and marketing of refined petroleum products, natural gas and electricity.
The Letter of Award will deploy the FPSO Lewek Arunothai, on a three-year fast-track gas production project in the North Malay Basin, Malaysia. The FPSO will be used to support early production activities and is targeted to be on station from mid-2013.
The award has a firm value of US$272.1 million for three years with the potential of another US$271.1 million should the full extension of three years be exercised.
Mr Lionel Lee, Group Managing Director of Ezra, said: “We are delighted that Hess has given us this vote of confidence. This win is proof of our competitiveness in the offshore production business in Asia. For EOC, this award will improve its earnings visibility and expand its client base.”
The Lewek Arunothai is expected to undergo refurbishment works in Singapore to further enhance her operational capabilities. Part of the upgrade includes the addition of an external turret mooring system which is being designed and fabricated in part by the Group’s turret design company, London Marine Consultants Limited, and TRIYARDS Holdings Limited, Ezra’s engineering and fabrication division, which was listed on the SGX-ST by way of introduction via a dividend-in-specie on 18 October 2012.
The Lewek Arunothai was delivered as the Group’s inaugural FPSO vessel in 2008 and concluded her original contract with Thailand’s national oil group, PTT Exploration and Production Public Company Limited (‘PTTEP’), in November 2011.
Press Release, November 14, 2012