LLOG Exploration Company, LLC, Covington, LA, will accelerate payments on the acquisition of the OPTI-EX production semi-submersible under an agreement in principle with EXMAR, Antwerp, Belgium.
Under the deal, LLOG will pay EXMAR a lump sum for the sale of the OPTI-EX of $250 million in January 2012. This is in addition to previous payments of $104.5 million and $10.4 million received in 2011. These payments will result in net cash proceeds after tax of about $127 million for EXMAR. Net profit on the sale of the OPTI-EX will be $50 million and accounted for fully in 2011. This transaction will further reduce the financial debt position of EXMAR by$113 million.
The OPTI-EX production semisubmersible is the first FPS conceived, designed, and built as a flexible and generic deepwater production facility. The innovative hull design is based on a proprietary ring-pontoon developed by EXMAR Offshore Company, Houston, TX.
Back in July, LLOG Exploration installed the OPTI-EX at the Who Dat development in the Mississippi Canyon in the U.S. Gulf of Mexico in a water depth of 3,100 feet. Earlier this month, LLOG Exploration successfully initiated production from the Who Dat development and is ramping up production and expects to achieve a rate of 20 thousand barrels of oil per day (MBOPD) and 22 millions of cubic feet of gas (MMCFD) from the three existing wells. The development plan for the field calls for LLOG to drill nine additional wells, which would fully utilize the 60 MBOPD and 150 MMCFD capacity of the floating production system.
The hull of the OPTI-EX was built by Korea's Samsung Heavy Industries and its topsides were installed by Kieit Offshore Services, Ingelside, TX.
December 22, 2011