Saturday, September 28, 2013
Mitsui, Others To Buy Into Ghanaian Floating Oil Output Base
TOKYO (Nikkei)--Mitsui & Co. (8031) and two other Japanese firms plan to invest in a project for the supply and operation of a floating production, storage and offloading vessel, or FPSO, in Ghana.
Mitsui, Marubeni Corp. (8002) and Mitsui O.S.K. Lines Ltd. (9104) will join an oil field development project in offshore Ghana for which Modec Inc. (6269) snagged contracts in August from British oil development concern Tullow Oil Plc and others.
Modec has set up a Dutch company, T.E.N. Ghana MV25 BV, to oversee FPSO leasing, operations and maintenance services. Mitsui will take a 30% stake in the firm, while Marubeni and Mitsui O.S.K. will obtain interests of 25% and 20%.
Of the 120 billion yen-plus cost, 30-40 billion yen is set to be covered by investment from the four firms. The remainder, amounting to more than 80 billion yen, will be financed through a syndicated loan from the Japan Bank for International Cooperation and others.
The FPSO will be owned by the Dutch firm, which will provide 10 years of leasing, operation and maintenance services to Tullow Oil.
Oil production is slated to begin in 2016.
(The Nikkei, Sept. 28 morning edition)