Xcite Energy continues to look for a partner to finance its heavy-oil Bentley development as it revises terms for bond debt.
According to its latest report for the first quarter of the year, the firm has now reached an agreement on the main commercial terms for funding proposals for the UK northern North Sea project, in the hopes of submitting a development plan to authorities later this year.
“The company believes its ability to offer a funding package to potential partners is an innovative structure which potentially mitigates the capital constrained environment in which the oil and gas industry is currently operating”, the company stated.
Time Running Out For Xcite North Sea Field
However, there is still no sign of a partner to fund the first phase of the field project, although the firm has been in talks to renegotiate terms of debt by the end of next month.
Meanwhile, Xcite is also progressing tenders to select an EPCIC contractor for the mobile offshore production unit and FSO and to finalise a drilling rig contract.
Based on the outcome of the funding proposals and Xcite’s “review of market opportunities to reduce costs”, there may be an impact on the future structure of the current contractor group, the company added.
Bentley Could Produce 300m Barrels
The Bentley development is located 100 miles east of Shetland and is one of the largest undeveloped fields in the North Sea. According to Xcite, the field could produce nearly 300 million barrels of oil over a period of 35 years, using enhanced recovery techniques.
Earlier this year, the company was awarded a North Sea licence extension in the Bentley development until the end of June 2017, with the aim to secure financing for the project.
“There is no assurance that any of these funding proposals currently being considered and negotiated will result in funding being secured”, the company said at the time.