Under the terms of the extension, the Munin FPSO, which is currently operating at the field, will return to Lufeng in the early second quarter of next year and will resume operations at the field for a minimum of three years.

The Munin until then will be sited at ConocoPhillips Xijiang field.

In a statement Bluewater Energy said, “After undergoing minor modifications and maintenance, the FSPO Munin will be relocated to Xijiang field to produce for ConocoPhillips China Inc for five to six months as a temporary replacement for the Nanhai Kai Tuo FPSO. Munin will use its full dynamic positioning capability for mooring and will reuse Xijiang field’s existing fluid transfer equipment.”

“During the temporary relocation of the FPSO Munin, sidetrack drilling on three existing wells will take place in Lufeng field. This new drilling technology facilitates production of new pockets of oil, which should serve to extend the field's life,” added the firm.

No fiscal remuneration was mentioned in the press release.