Premier Oil, Huntington Partners May Lend $40 Million to Sevan
The partners including Norwegian Energy Co. ASA and EON AG have a lease agreement with Sevan Marine for its floating production, storage and offloading vessel, Sevan Voyageur. Sevan Marine has insufficient funds to cover cost overruns on the project, which was due to pump first oil by April 2012.
“We are working with them to see if we can stay on track, but it’s not easy,” Simon Lockett, the chief executive officer at Premier, said today in an interview in London. We have some rights that “allow us to protect the schedule, to put up the money and make sure the project works.”
Sevan Marine, the Norwegian owner of oil production vessels, today reported a first-quarter loss and said the outcome of a proposed debt restructuring is “still uncertain.” In May, Noreco said the Huntington partners have “the right to buy the unit under certain conditions.”
The partners may put up the money in return for a lower day-rate for the vessel, Lockett said. “But we are not in that position yet” and “within the next six weeks we will have much greater clarity on the situation.”
The Huntington field is located in license P1114 in the U.K. part of the central North Sea. EON owns 25 percent of the license, while Noreco holds 20 percent, Premier owns 40 percent and Carrizo Oil & Gas Inc. (CRZO) 15 percent.
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