The agreement also back the charter of the production unit, FPSO type (Floating Production Storage & Offloading), OSX 1, and related operation and maintenance services under the previously mentioned agreement and the expected production targets for the short, medium and long term.
OGX and OSX agreed to the terms and conditions for a cooperation agreement to support OGX’s demand for equipment and production services. The agreement establishes a mutual right of first negotiation which applies to the construction of production units in Brazil, and the charter and operation of the production units by OSX, at market terms and according to the technical specifications and timeframe required by OGX.
The company said that the agreement terms and conditions establish an open book procedure and a target predetermined remuneration margin of 15% in the shipbuilding industry, 5% in O&M services and leveraged return on equity of 15% for the leasing activity.
The equipment will be provided by OSX will contribute to OGX’s compliance with local content requirement obligations assumed under the concession contracts with ANP. The equipment will be leased, thereby minimizing capital needs for OGX in the short and medium term and optimizing OGX’s use of cash during this period.
OGX and OSX agreed to the terms and conditions for the charter of the FPSO OSX 1 for a period of 20 years, at an average daily rate of US$263,000/day. The charter also covers related operational and maintenance services.
