2007

Forming a Strategic Alliance with Fred. Olsen Production ASA for Offshore Oil Field Development Projects

May. 9. 2007
Marubeni Corporation

Marubeni Corporation (“Marubeni”) announced today that Marubeni and Fred. Olsen Production ASA (“FOP”), Norway, have formed a strategic alliance for the identifying and executing FPSO/FSO(*) projects in certain countries in the Asian region (Vietnam, China, Thailand and Cambodia).
FPSO/FSO is a kind of the systems to develop offshore oil field and some of its features include the nature of floating, and having oil storage capacity.  In general, FPSO/FSO is utilized in case of development of distant-located, deep-water or marginal fields, or for the purpose of early production.  Compared to fixed platform production systems, FPSO/FSO has mainly the following merits:

1) Produced oil is once stored in the system and transported to onshore by way of shuttle oil tankers, so the system makes it possible to develop the fields where laying the sub-sea pipeline will be difficult due to the topographical reason, or will not economically be feasible due to the long distance of such field from onshore;
2) Flexibly and widely applicable in terms of water depth conditions; and
3) The system can minimize the time to first oil, and make it feasible to develop shorter production-life fields, because the system can be completed by way of converting an existing oil tanker, or be reused on alternative fields.

Considering the expected continuous growth of energy demand in general, the trend of fields to be developed being deeper-water, longer-distant or more marginal, or having shorter production life, it is expected that the role of FPSO/FSO shall be more significant.  Marubeni will support comprehensively to maximize the chances of success for the projects jointly with FOP, by utilizing its global network and its expertise in the implementation of major capital projects worldwide.

(*)FPSO/FSO
FPSO : Floating Production Storage and Offloading Unit
FSO : Floating Storage and Offloading Unit

<Company profile of FOP>
Company Name : Fred. Olsen Production ASA
Address : Fred Olsensgt. 2, 0152 Oslo, Norway
Date of Incorporation : November 5, 1980
Representative : Marten Lunde, CEO
Business : Owning, operating and maintaining FPSO/FSO

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