Australia-based Octanex and its joint venture partners have secured financing for the development of Ophir field, offshore Malaysia.
A letter of offer was accepted for syndicated term loan facilities of up to nearly US$118.8 million for 75% of the planned capital expenditure for the development of Ophir field, 75% of the first three quarters of operating expenditure and a bank guarantee facility of $13.5 million. The tenure of the loan facilities is up to four years.
Octanex chairman, Geoff Albers says securing the project financing is an important milestone for the development of Ophir.
The finance will be provided by a syndicate comprised of Malaysian Banking Berhad, RHB Bank Ltd. and United Overseas Bank Ltd.
Ophir will be developed by Ophir Production Sdn Bhd (OPSB). The project involves involves the drilling of three production wells from a single wellhead platform producing into a leased tanker for storage and offloading of crude.
Octanex says the capital cost of the development is estimated at $135million and first oil expected in December 2015.
The Ophir risk services contract was awarded to OPSB in June 2014. Octanex is the operator and holds a 50% interest with partners Malaysia’s Scomi Energy Services (30%) and Petronas subsidiary Vestigo Petroleum (20%).