CAMAC Energy Inc. announced that a letter of intent (LOI) has been signed regarding terms and conditions of a long-term agreement for the floating, production, storage, and offloading system (FPSO) ARMADA PERDANA. The signed LOI provides for an initial term of five years beginning January 1, 2014, with an automatic extension for an additional term of two years unless terminated by CAMAC with prior notice. The parties are working towards executing a definitive agreement on or before January 31, 2014.
The FPSO ARMADA PERDANA can process up to 40,000 barrels of oil per day, with a storage capacity of one million barrels of oil. It currently supports our daily production of approximately 2,000 barrels of oil and 40 mmcf of natural gas from the Oyo Field offshore Nigeria in OML 120.