Australia’s Petsec Energy announced a contract for supply of oil tanker loading equipment for the An Nagyah oilfield production restart in Yemen.
The purchase of the oil loading hardware is a key component of preparations for the restart of production and delivery of crude via a trucking operation from the company's An Nagyah Oilfield within the Company's Damis Block S-1 Production Licence in Yemen.
The Dual Sided Truck Loading Facility will be manufactured by U.S. firm S&S Technical, Inc. and delivery to the Middle East should be within 3 months. The equipment includes a pumping and metering system with a loading capacity of 5,000 barrels of oil per day (bopd) and includes associated safety equipment. There is the potential to increase the loading rates should the Company determine this is required once trucking operations have commenced.
The Petsec Energy is focusing on delivering the remaining requirements necessary for the restart of production at An Nagyah, including a crude transport trucking contract, a pipeline access and storage agreement and a crude purchase and lifting agreement.
Initial production at the time of restart of the An Nagyah Oilfield, which was shut at the end of February 2014, is expected to be of the order of 1,000 bopd ramping up to 5,000 bopd within the first month of production. Trucking operations are expected to deliver this crude to export terminals on Yemen's southern coastline on the Gulf of Aden.
The An Nagyah Oilfield is the only developed/producing oilfield of the five oil and gas field discoveries contained in the Damis (Block S-1) Production Licence.