On 12 December 2017, we visited the Aoka Mizu FPSO at Drydocks World Dubai, and had the opportunity to meet a number of Hurricane Energy plc (LON:HUR) and Bluewater employees. We returned with greater confidence in Hurricane’s ability to mobilise the Aoka Mizu to location in Q218 and to deliver first oil in H119. While some risk remains relating to weather-critical items, we feel that the risk of schedule slippage is lower than we had previously assumed. We bring first oil forward by six months in our updated valuation; this is offset by a slightly more conservative view of production ramp-up and uptime assumption in the first six months of production.
Vessel upgrade on track
On visual inspection of upgrade activity on the Aoka Mizu FPSO, the vessel turret and buoy construction, it was clear that the project is currently running to schedule, if not a few days ahead. We have increased confidence that the FPSO will be ready for sail away from Dubai in Q2/Q318 and, assuming successful SURF/mooring installation in the 2018 summer weather window, it should be able to deliver first oil in H119. The relative simplicity of the upgrade project was apparent, with minor modifications being made to the marine system and topsides, and the construction of a new buoy well underway. Management has built in spare capacity within the buoy system and topsides such that additional producers can be tied in to the FPSO – current maximum oil capacity stands at 30kbod.
To read the entire report Please click on the pdf File Below: