In line with this, the joint venture signed a letter of intent (LoI) with BW Offshore (BWO) for the design, conversion, installation and operation of a purpose built floating production storage and offloading vessel (FPSO) of Suezmax size (850,000 barrels), which will have the capability to handle higher oil, water and gas rates than the present Crystal Ocean and Basker Spirit system.
In addition, The Basker Manta Gummy joint venture has entered into a LoI to contract the semi-submersible drilling rig Songa ‘Venus’ for commencement of drilling in November/December of 2008 for between 120 to 150 days.
In aggregate, the joint venture is planning to spend up to A$1230 million dollars on drilling, completing and subsea connections including manifolds and pipeline, while the new FPSO, in which BWO is investing approximately $400 million inclusive of its gas processing facilities, will be leased for an initial period of five years plus options to extend the contract for up to a total period of 15 years.
