Mercator suffers setback in FPU sale to Oriental

Mercator suffers setback in FPU sale to Oriental

India’s Mercator Limited has informed that the sale of the floating production unit (FPU) Virini Prem to Oriental Energy Resources has been delayed due to process reasons, Offshore Energy Today reports.

The sale of the FPU Virini Prem was agreed on December 9, 2016, at which time Oriental agreed to pay $76 million for the FPU. The two companies expected to complete the deal on Monday, January 30, but Mercator said on Tuesday that the completion would have to be delayed to February 15 or earlier due to process reasons.

After the transaction is completed, Mercator has proposed to repay its debt of $72 million out of the proceeds it will receive from the sale. The FPU is currently deployed on the Ebok oil field offshore Nigeria where Oriental is a co-venturer and production sharing partner.

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