26 October 2014, Lagos – ADDAX Petroleum has extended its use of the FPSO Knock Adoon offshore Nigeria by a year in a $39 million extension contract with vessel owner Yinson Holdings though its subsidiary Adoon Pte Limited.
The vessel owners, who confirmed the deal on Monday said the extension contract is valued at approximately $39 million.
The original contract for the Floating Production Storage and Offloading (FPSO) was awarded on 17 October 2006, for eight-year period with option to renew up to eight years.
Both parties have now agreed to extend the term of the said original contract by one year to 16 October 2015.
The Executive Chairman of Yinson, Lim Han Weng said: “The extension is a sign of confidence in the company. We hope to continue our strong working relationship with all our clients and business partners,”
Yinson fully owns Knock Adoon, which has a capacity to process 60,000 barrels of oil a day and a storage capacity of 1.7 million barrels.
Addax, a subsidiary of Sinopec Group is engaged in the exploration, development and production of oil and gas resources in Africa, the Middle East and Europe.
In Nigeria, SINOPEC-owned Addax’s producing assets include 11 field complexes with around 60 production wells in concession OML123, two fields with 20 producing wells in concession OML 124, and two fields with 14 production wells in concession OML126.
On-going progress with Field Development Planning is expected to result in a significant increase in production.
Meanwhile, reports showed that Addax has finalised arrangements to begin work on its Ofrima-Udele oil wells located in oil mining lease (OML) 137 offshore Nigeria and south of Port Harcourt in Rivers State.
The assets, which have undergone exploratory and appraisal stages, are set for development and if work progresses as scheduled, production is expected to start early 2016.
OML 137 is one of Addax’s notable flagship projects on which it banks the realisation of its aspiration to attain a daily production well in excess of 100,000 barrels per day (bpd).