BW Offshore inks $4.6 billion contract with Barossa FPSO
BW Offshore has announced that it has agreed to supply an FPSO to Santos for the Barossa gas field off the coast of Australia.
The lease and operate agreement has a 15-year fixed term with a 10-year option period. BW Offshore will be responsible for engineering, procurement, fabrication, installation, and operation of the FPSO during the contract's firm duration.
The FPSO unit can handle up to 800 million standard cubic feet of gas per day (MMSCFD) and has a design capacity of 11,000 barrels of stabilized condensate per day. The FPSO is scheduled to start producing gas in the first half of 2025.
During both construction and service, a syndicate of foreign project finance banks will provide 14-year debt financing. BW Offshore and foreign infrastructure equity partners will also put in 51% and 49% of the project's equity, respectively.
“This award confirms our ability to leverage extensive operational and development capabilities to win and execute offshore energy transition related projects. The Barossa FPSO represents a new type of infrastructure-like contract for BW Offshore with attractive long-term returns, supported by strong partnerships with equity co-investors and banks,” stated Marco Beenen, CEO of BW Offshore.
Maritime Business World