Nexus wins $800 mln Philippines oil job

Oilfield services group Nexus Floating Production has won a seven-year contract worth about $800 million to provide a production vessel for a deepwater project off the Philippines, Nexus said on Thursday.

The deal with Philippines exploration firm Burgundy Global Exploration Corporation is for lease of a floating production, storage and offloading (FPSO) vessel for the Camago Malampaya Oil Leg project, Nexus said.

"The agreement has a value of approximately $800 million for a managed lease of the Nexus#1 generic FPSO over the seven-year contract period," Oslo-listed Nexus said in a statement. "First oil is scheduled for the first quarter 2010."

Under the letter of intent, Burgundy is granted a right of first refusal which allows Nexus to continue promoting the vessel in the market, Nexus said.

The project will develop an oil rim in the Malampaya field, an oil and gas discovery 70 kilometres from the Palawan Islands off the Philippines in waters 850 metres deep, Nexus said.

Burgundy has an 84.9 percent interest in the the project, and the Philippines National Oil Company Exploration Corporation has 15.1 percent, Nexus said.

Nexus Floating Production Ltd, located in Singapore, has ordered two FPSOs from Samsung Heavy Industries in Korea For delivery in June 2009 and May 2011. (Reporting by John Acher)