Oil main Shell has awarded a contract extension to the Petrojarl Knarr FPSO owned by Altera Infrastructure, beforehand referred to as Teekay Offshore. However, a number of the phrases of the contract have been modified, together with a discount in day price.
Altera Infrastructure mentioned on Wednesday that its subsidiary Teekay Knarr had entered right into a contract modification with Shell, because the operator of the Knarr discipline, that extends the contract for the lease and operation of the Petrojarl Knarr FPSO till at the least March 2022.
The vessel has been working on the Knarr discipline since March 2015 below a agency length till March 2021, which included an additional payment payable by the operator if the contract was not prolonged by way of to 2025 and with further extension choices thereafter.
The Knarr discipline, situated 120 kilometres off Norway, has estimated gross recoverable reserves of round 80 million barrels of oil equal with a manufacturing lifetime of at the least ten years.
Day price modifications
The contract modification features a discount in day price from March 2021 to March 2022 and the elimination of the payment payable by the operator if the contract was not prolonged, in return for the introduction of a further manufacturing quantity and oil price-related tariff.
The modification additionally terminates the operator’s buy possibility for the vessel and offers for a mutual proper to terminate the contract on six months’ discover with out cost of penalty, such termination to not be efficient earlier than March 2022.
Chris Brett, President Altera Infrastructure FPSO, mentioned: “The contract modification offers necessary visibility for the subsequent interval of operations and it additionally allows us to place the vessel for the subsequent re-deployment”.
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