Octanex has announced that limited recourse project finance has been secured for the development of the Ophir field, offshore Malaysia. Octanex is a 50% shareholder in Ophir Production Sdn Bhd ('OPSB') which was awarded the Ophir Risk Service Contract in June 2014. Octanex’s joint venturers in OPSB are Scomi Energy Services, a Malaysian downstream oil and gas services company listed on the Main Board of Bursa Malaysia with a 30% interest, and Vestigo Petroleum, a wholly owned subsidiary of PETRONAS, incorporated in 2013 with a focus on the development of small, marginal and mature fields, holding a 20% interest.
The Ophir oil field will be developed by OPSB via a simple stand-alone development with first oil expected in December 2015. This involves the drilling of three production wells from a single wellhead platform producing into a leased tanker for storage and offloading of crude. The capital cost of the development is estimated at US$135 million.
OPSB has accepted a Letter of Offer for syndicated term loan facilities of up to US$118.76 million for 75% of the planned capital expenditure for the development of the Ophir field, 75% of the first three quarters of operating expenditure and a bank guarantee facility of USD13.5 million. The finance is to be provided by a syndicate comprised of Malayan Banking Berhad (Maybank), RHB Bank (L) Ltd and United Overseas Bank Limited. The tenure of the term loan facilities is up to four years. Octanex has provided a proportionate corporate guarantee and undertaking in respect of the facilities.
Octanex Chairman, Geoff Albers, comment: 'Securing project financing is an important milestone for the development of the Ophir oil field'.
