Oil and gas operator Ithaca Energy has entered into agreements to acquire all the Greater Stella Area (GSA) licenses in the North Sea and associated infrastructure interests of Dyas UK Limited and Petrofac.FPF-1; Source: Ithaca EnergyThe Ithaca-operated Greater Stella Area is located in the heart of the Central Graben area of the Central North Sea, on the UK Continental Shelf.Oilfield services provider Petrofac said on Friday it has signed an agreement to sell Petrofac GSA Holdings Limited to Ithaca Energy for a total consideration of up to $292 million to reduce its debts.Petrofac GSA Holdings Limited owns Petrofac’s 20% interest in the Greater Stella Area development and its 24.8% interest in the FPF1 floating production facility. It also owns Petrofac’s long-term receivable from the GSA joint operation partner.Petrofac said that, under the terms of the agreement, Ithaca will pay approximately $145 million by or on completion and a further $120 million of non-contingent deferred consideration in the period 2020-2023. A further $28 million of contingent consideration is payable depending on field performance.The transaction is expected to complete in 1Q 2019 and is subject to several conditions precedent, including completion of Ithaca’s acquisition of Dyas UK Limited’s 25% interest in the Greater Stella Area development and its shares in the FPF1 Company in accordance with the agreement executed by Ithaca and Dyas, also on Friday.Ithaca’s output to increaseAs a result of the transactions, Ithaca’s pro-forma 2018 production is forecast to increase by approximately 50% to 22,000 barrels of oil equivalent per day, with pro-forma 2018 unit operating costs forecast to reduce to approximately $18 per barrel of oil equivalent.By obtaining full ownership of the GSA fields and also the FPF-1 floating production facility, Ithaca said on Friday it will benefit from both the value of the hydrocarbons produced from those fields as well as the income generated by the FPF-1 for the provision of host processing services for third party production from fields such as Vorlich and any potential future satellite feeder fields.Petrofac estimates that the transaction will result in a post-tax impairment charge of approximately $55 million. Proceeds from the sale will be used to reduce gross debt. Petrofac will continue to provide Duty Holder services to the FPF1 floating production facility on a life of field contract.Petrofac’s Group Chief Executive, Ayman Asfari, said: “This disposal marks a further milestone in our journey back to a capital-light business and, along with recently-agreed transactions in Mexico and Tunisia, marks the significant progress we are making on our stated strategy.”
The future operator of the Hollandse Kust (zuid) III and IV wind farms will not be exempt from paying the seabed lease fee for the portions of the wind farms situated within the 12-mile zone of the Dutch territories in the North Sea, according to Eric Wiebes, the country’s Minister of Economic Affairs and Climate Policy.Responding to the questions posed by the House of Representatives with regards to the industry’s opposition to paying the seabed lease, Wiebes said that the ministry expects the coming tender to attract sufficient interest from potential developers of the wind farms despite the additional costs, and that the tender will include zero-subsidy bids.Wiebes also added that the potential request for seabed lease exemption filed with the European Commission would delay the tendering procedure, scheduled for March 2019. This, in turn, would affect the country’s offshore wind rollout timeline, Wiebes said.BackgroundThe Hollandse Kust (zuid) III and IV tender comprises two wind farms with an individual capacity of between 342MW and 380MW.Approximately 70% of Hollandse Kust (Zuid) III & IV wind farm sites are located within the 12-mile zone of the Dutch territories. This means a seabed lease has to be established between the wind farm operator and The Central Government Real Estate Agency. Apart from the seabed lease for the wind turbines, a rental agreement for the infield cabling between the wind turbines and the TenneT platform has to be signed.The Central Government Real Estate Agency has calculated the cost for the right to the seabed lease at these sites, based on a rate of EUR 0.98 per MWh every year, using a fixed total capacity of 350MW and 4,000 full load hours. The payment is fixed and independent of the final actual installed capacity or output from the wind farms and is only required for the part of the wind farm within the 12 miles zone. For HKZ site III this is 71.85% and for HKZ site IV is 68.23%. These annual payments will be required four years after the permits have become irrevocable and will be indexed for the period of operation.Additionally, from the moment the permits are given to the winner up to the moment of the payment of the right of superficies seabed lease, a fee of EUR 650 per MW per year has to be paid for the parts of the sites within the 12-mile zone. These payments (indexation) will also be required for the period from when the wind farm ceases operation until it has been fully decommissioned and removed.The rental price for the infield cables is fixed at a one-off amount of EUR 3.17 per m2 impacted corridor. The width of the impacted corridor is fixed at 0.3m. For HKZ site III, the impacted part is calculated as a total cable length of 60km, whilst for HKZ site IV the calculated length is 70km.
TT jumps in Caribbean Football Union (CFU) rankingTrinidad and Tobago’s emotional World Cup qualifying victory over the United States last Tuesday have propelled them to third in the Caribbean Football Union rankings after the release on Monday of the World Rankings by the sport’s world governing body.Moved up 16 placesThe Soca Warriors earned a significant jump in the World Rankings issued by FIFA, moving up 16 places to 83rd, making them the biggest movers in the Caribbean, following their emotional 2-1 victory that zapped the United States’ claims for a place in the 2018 FIFA World Cup in Russia.The result was sweet revenge for the twin-island republic, after the Americans dealt them a similar blow in qualification for the 1990 FIFA World Cup in Italy.Meanwhile, Antigua & Barbuda and Suriname have held onto their places in the top-10, but has swapped places, being sixth and seventh respectively. The Antiguans however, were the biggest losers in the region, dropping 19 places in the World to 136th.Grenada and Barbados have been the great beneficiary of the slide out of the top-10 by Guyana. They are now eighth and ninth ahead of the 10th-placed Dominican Republic with the Barbadians making a notable 10-place jump in the World Rankings to 160th.The next World/CFU rankings will be published on November 23.
BROWARD COUNTY – Congratulations to Broward County’s Sheridan Technical College for completing 45 years of accredited status by the Council on Occupational Education, a national accrediting agency of higher education institutions recognized by the U.S. Department of Education.Sheridan Technical, which initially became accredited with the Council in 1974, has undergone self-studies and reviews every six years to maintain its accreditation. The college will be recognized during the Council’s annual meeting in Reno, Nevada on November 13 – 15, 2019. Sheridan Technical Director Thomas Moncilovich and Assistant Director Annette Johnson will represent the college and accept the award at the annual meeting in Reno.The award of accreditation is based on an evaluation to demonstrate that the institution meets not only the standards of quality of the Council but also the needs of students, the community and employers. Sheridan Tech was one of the first institutions to be accredited under the Council.Sheridan Technical College offers career and technical study programs affording students the opportunity to gain skills in high-wage, high-demand occupational fields and compete successfully in the global workforce. Under the direction of licensed and certified teaching professionals, students engage in full or part-time training in 47 career and technical education programs using the latest industry-approved technology and equipment.