Bahamas Petroleum Company signs service agreement with Baker Hughes GE

Bahamas Petroleum Company signs service agreement with Baker Hughes GE
NASSAU, BAHAMAS – Bahamas-based oil exploration company Bahamas Petroleum Company (BPC) has signed a Master Service Agreement with leading energy technology company BakerHughes GE
Simon Potter, BPC’s chief executive officer, hailed the signing as “a long-awaited and significant milestone” in its progress toward drilling its first exploration well in The Bahamas in 2020.
“”Finalizing the Master Service Agreement with BakerHughes GE has enabled us to reach a long-awaited and significant milestone for our company: placing an order for the wellheads that have been made to order for our exploration well in The Bahamas,” Potter said.
“In ordering these high value, critical path, long-lead items, along with the other multiple work streams ongoing, management is taking demonstrative steps to ensure we remain on track for drilling to commence as per our previously announced drill schedule.”
In a statement, BPC also announced the purchase of wellheads and 36″ conductor casing for delivery in March 2020, consistent with schedule for spudding the well.
According to the company, in August 2019, following extensive technical discussions and mutual due diligence, BPC received proposals (including pricing) for a range of well-related equipment, including wellheads and tubulars, for the intended drilling 2020 campaign.
“At that time, and as previously announced, BPC issued a notice of award to BakerHughes GE for provision of that equipment, as a precursor step to a detailed contract as is customary in the industry,” the statement read.
“As contemplated, and following a further period of negotiation and collaborative work, BPC has now entered into a Master Services Agreement (“MSA”) with BakerHughes GE for the provision of specified equipment.”
Baker Hughes is organized in Delaware and headquartered in Houston, and is recognized as one of the world’s largest oil field services companies.
BPC recently announced that it had raised $11.4 million to help spud an exploratory well in the first half of 2020.
New shares in the company were issued via a placement and separate open offer, with the total funds raised representing an oversubscription of 60 per cent against the company’s initial target.
The company’s open offer closed with 50 percent take-up from existing shareholders raising gross proceeds of US$4.3 million through the issue of 166.4 million ordinary shares.
The placement raised additional gross proceeds of US$7.1 million through the further issue of 275,641,455 ordinary shares.ross proceeds from both offers totaled US$11.4 million  representing an oversubscription of 60 per cent against announced targeted fundraise amount.
As a result of the Open Offer, the Placing and a previously announced Conditional Convertible Note, the Company expects to see gross cash inflows of approximately US$24.6 prior to March 2020.
Those proceeds according to the company would likely to be sufficient to drill an exploratory well in waters south-west of Andros, near the maritime boundary with Cuba.
As BPC moves closer to securing a drill rig and  spudding its exploratory well, local environmentalists have continued to voice their concerns over the prospect of oil drilling in Bahamian waters.