• 14 Apr 2015

ABTOG announces collaboration agreements with Kongsberg Maritime and Braemar ACM Shipbroking

Km Nexan Refit21

ABT Oil and Gas Ltd. (“ABTOG”) is pleased to announce the signing of Collaboration Agreements with Kongsberg Maritime and Braemar ACM Shipbroking, becoming the first members of the consortium that is targeted at the delivery of the Marginal Field Initiative. The advent of the consortium will significantly drive forward the delivery of the Marginal Field Initiative.


  • Collaboration agreements signed with major industry players who will become members of the consortium to deliver the Company’s Marginal Field Initiative:
    • Kongsberg Maritime (“KONGSBERG”) – will provide ‘Best in class’ proven remote control and monitoring technology for ABTOG’s normally unattended development solutions
    • Braemar ACM Shipbroking (“Braemar ACM”) – will assist in sourcing financing, asset negotiations and shipyard negotiations
  • All parties will also market the Marginal Field Initiative through their global networks with a view to sourcing projects for the initiative
  • The signing of these agreement is expected to provide significant impetus to ABTOG’s Marginal Field Initiative
  • Collaboration agreements provide that each of KONGSBERG and Braemar ACM perform their roles through the application of their own resources
  • Discussions ongoing with other complementary major industry players to join the consortium providing further appropriate expertise to the Marginal Field Initiative particularly in the areas of engineering design, project management, fabrication yard, topsides, duty holdership and funding
  • Principle of collaboration is that each partner demonstrates their belief and commitment to the Marginal Field Initiative through investment which is tailored to each party’s contribution.

“We continue to believe that the Marginal Field Initiative is a truly global opportunity. The agreements that ABTOG has completed with these major industry players further justifies this belief whilst greatly endorsing and providing further credibility to our initiative. We are pleased with this progress as we seek to bring together a consortium of like-minded industry players with the expertise to deliver the Marginal Field Initiative.

We expect these companies, as well as the addition of further industry players in the near future, to
significantly increase the venture’s activity. We look forward to working with our new partners,
gaining further projects and taking the Marginal Field Initiative to the next stage of its development.”

Alan Minty, CEO of ABT Oil and Gas

“We are happy to be partnering with ABTOG on their Marginal Field Initiative. ABTOG’s business

model and strategy is very timely as the industry is looking closely at costs and how to continue to
ensure effective economic future production. We believe that this has the potential to be a
considerable initiative. The ability of ABTOG’s solutions to significantly reduce the opex and capex on
oil and gas development projects and the returns that can be gained will in our view undoubtedly
appeal to operators and investors alike. We look forward to working with ABTOG and its partners in
taking the venture forward and gaining further projects.”

James Kidwell CEO Braemar Shipping Services PLC

“The effect that normally unattended operations could have on operating expense is enormous. We
fully endorse ABTOG’s belief that normally unattended operations offer significant potential for the
advancement of offshore oil and gas production particularly at this time when the industry is focussed
on cost reduction.

We believe that our expertise and best in class proven remote control technology and monitoring can
deliver leading edge development solutions that can maximise recovery from smaller fields given the
significant reduction in opex and capex that they provide. We look forward to working with all the
partners in delivering this initiative.” 

Dean Jennings, Sales Manager, Offshore Production Units, Kongsberg Maritime
Marginal Field Initiative Consortium

ABT Oil & Gas Ltd. (“ABTOG”), has been progressing the Marginal Field Initiative for a number of

years. Over that time ABTOG has refined the business model and significantly progressed the project
delivery mechanism to ensure that marginal fields, which will remain undeveloped if only using
conventional development solutions, can be developed providing returns that justify the investment
in these projects. The key benefit of this work is that ABTOG has successfully proven that, in many
cases, the opex and capex costs of a project can be significantly reduced enabling projects which
have been deemed to be uneconomic to be developed to provide considerable returns to the
operators and investors alike.

Dialogue with the market and, in particular, asset owners continually reinforces the need for delivery
capability to be demonstrable. ABTOG’s offering requires expertise across a broad spectrum of
disciplines and, as such, it is looking to build a consortium of established industry partners in order to
ensure that the ability to deliver is undeniable. ABTOG is seeking to establish relationships with
companies that are forward thinking, recognise the opportunity offered by the Marginal Field
Initiative and are willing to support their belief through the application of their own resources.
The agreements with KONGSBERG and Braemar ACM reflect those principles. Both are strong
industry partners, recognised global leaders in their fields with extensive resources which they intend
to apply to advance the Marginal Field Initiative. Through these partnerships the Marginal Field
Initiative benefits through the advancement of key areas such as:

  • the demonstration of a normally unattended installation which is critical for opex reductions;
  • access to capital;
  • expanding global reach to access projects;
  • enhancing credibility; and
  • direct investment into advancing the initiative.

ABTOG is working on further collaboration agreements including engineering design, project
management and facility construction, all based upon the same principles, and expects to be able to
announce further arrangements in due course. Completion of these arrangements will create a
consortium dedicated to the implementation of marginal field solutions which will allow ABTOG’s
visions and business model to become a reality.

Details of Collaborative Agreements

Kongsberg Maritime (KONGSBERG)

KONGSBERG will work with ABTOG to prepare a Proof of Concept based on Kongsberg Maritime’s
“Full Picture” integrated systems tailored specifically for marginal fields. This includes all aspects for
remote control operation including; monitoring, automation and operation offshore oil and gas
production installations to demonstrate, to regulators and operators alike, that operations can be
normally unattended. This work will be completed in two phases. Phase 1 will demonstrate that,
using Kongsberg Maritime’s systems and extensive experience of designing and implementing
systems to facilitate remote or unattended operations, alongside ABTOG’s extensive knowledge of
the regulatory environment and expertise in risk and reliability, normally unattended operations can
be achieved.

Along with Phase 1, work will also commence on the preparation of an Integrity Case for normally
unattended operations, which will form Phase 2. This will be a more detailed technical
demonstration of overall performance of the facility, including environmental performance and
availability / production uptime, using a risk-based approach to provide the evidence that will be
required by regulators and operators that these solutions are technically and economically feasible
whilst also being environmentally safe. Each party will be responsible for their own costs.
Kongsberg Maritime delivers products and systems for positioning, navigation and automation to
merchant vessels and offshore installations, as well as products and systems for seabed surveying
and monitoring, and for fishing vessels and fisheries research. The business area is a market leader in
these areas.

Kongsberg Maritime is a wholly owned subsidiary Kongsberg Gruppen, (OSE-ticker: KOG), an
international, knowledge-based group delivering high technology systems and solutions to clients
within the oil and gas industry, merchant marine, defence and aerospace. KONGSBERG has more
than 7,700 employees located in more than 25 countries, with total revenues of NOK 16.6 billion in
2014 and a market capitalisation of approximately NOK 19.5 billion.

Braemar ACM

Braemar ACM has considerable expertise in a number of areas in the oil and gas industry. Specifically

Braemar ACM’s role will include:

  • shipyards negotiations (worldwide)
  • being exclusive brokers for all marine equipment required for field development and chartering offtake tankers
  • sourcing financing opportunities and introducing investors
  • sourcing projects for the Marginal Field Initiative through its global network
  • assisting with the sale of future Field production

Braemar ACM is one of the largest chartering and S&P shipbroking companies in the world. Braemar
ACM was formed under its most recent name via the 2014 merger of Braemar Seascope and ACM
Shipping. With offices in 16 key shipping geographies worldwide, covering chartering, S&P,
operations and market research across all the major commercial shipping sectors, Braemar ACM can

deliver a comprehensive shipbroking service in any location and at any time.

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