Another VLCC will be converted into an FPSO shortly following the announcement that Mitsui, Marubeni and MOL have backed a long term project for a floating facility to be operated by MODEC.
The FPSO will be located in the Tweneboa, Enyenra, Ntomme (TEN) oil fields, offshore Ghana.
Mitsui, Marubeni and MOL have invested in TEN Ghana MV25 BV (MV25), a Dutch company established by MODEC, which will lease, operate and maintain the FPSO.
In August 2013, MV25 concluded the charter agreement with Tullow Ghana, the operator of TEN oil fields and a subsidiary of Tullow Oil. The charter contract initially runs for 10 years, with options for extension every year thereafter for up to 10 years additional years.
The loan agreement on a project finance basis was signed by the Japan Bank for International Cooperation (JBIC), Sumitomo Mitsui Banking Corp Co-operation (lead arranger), Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank, ING Bank and ABN AMRO Bank.
West Africa has seen numerous significant discoveries of expansive offshore oil fields in recent discoveries of expansive offshore oil fields in recent years, thereby giving rise years to expectations of fresh demand for additional FPSOs in the region, the partners said.
TEN oil fields are owned by a consortium of five companies, including Tullow Ghana as operator, Anadarko Petroleum Corp and Ghana National Petroleum Co.
The VLCC conversion project is planned to be completed and the FPSO deployed in 2016. It will have an oil processing capacity of 80,000 barrels per day, gas processing capacity of 170 mill cu feet per day and an oil storage capacity of 1.7 mill barrels.