Ocean Power Technologies to deploy wave device for Premier Oil

UK exploration and production company Premier Oil Plc (LON:PMO) will be leasing a wave power device supplied by Ocean Power Technologies (NASDAQ:OPTT), or OPT, over a period of nine months, the latter announced on Thursday.

The two companies have signed a deal under which OPT will deploy a PowerBuoy device in one of Premier Oil’s offshore fields in the Central North Sea. It will be used as a self-sustaining intelligent platform that provides communications and remote monitoring services.

The contract covers an initial three-month trial, to be followed by a six-month extension. The lease can also be extended by another six months. The project is beginning this month and the deployment is expected in October 2018. It is backed by Aberdeen-based Oil & Gas Technology Centre (OGTC), which has provided co-funding, support and technical input.

OPT and Premier Oil are also evaluating an additional longer-term deployment where the PowerBuoy would also be used to power and communicate with subsea control modules to monitor pressures and temperatures within the wells. Planning for this second phase would start in late 2018, while the installation could take place next summer.

The New Jersey-based wave energy developer entered into a similar deal with Italian oil and gas major Eni SpA (BIT:ENI) in March, leasing a PB3 PowerBuoy for use in the Adriatic Sea. The two contracts provide the potential for more than USD 3.1 million (EUR 2.7m) in revenues for OPT based on all contracted pre-trial work, trial deployments, service and support, optional trial periods and services, it said. Both customers have the option to purchase the devices.

(USD 1.0 = EUR 0.858)

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