BW Offshore securing finance for Barossa FPSO

Aug. 25, 2021
BW Offshore has issued an update on its FPSO fleet in its latest results statement.

Offshore staff

OSLO, Norway – BW Offshore has issued an update on its FPSO fleet in its latest results statement.

The FPSO Polvo is undergoing decommissioning in Brazil after finishing its contract last month. Feasibility studies are under way for BW Energy’s Maromba oil project in the Santos basin.

Offshore New Zealand, the Umuroa was disconnected and is currently in lay-up in Indonesia.

In April, BW Offshore sold Berge Helene for demolition and recycling at the Priya Blue shipyard in India. Grieg Green is the nominated representative on site at the yard to monitor progress, compliance with environmental and safety regulations and application of the ship recycling plan.

Early this year an accident occurred on the Espoir Ivoirien that was caused by a leakage of hydrocarbons into a tank where work was being performed, leading to two fatalities. A change program has been initiated to address underlying and systematic issues and apply lessons-learned throughout the organization.

Since Santos and its partner took FID for the Barossa field FPSO in the Timor Sea, BW Offshore has secured main equipment packages for the FPSO hull, mooring and topsides fabrication.

However, the company warns that the global offshore equipment and supplier market is undergoing a spell of cost inflation. BW Offshore has responded by locking in much of its planned third-party deliveries at an early stage and is working to mitigate any impact on equipment packages and work scope still outstanding.

Debt and equity financing for the Barossa project is close to completion with various international project finance banks providing a 14-year $1.15-billion combined construction and long-term debt financing.

BW Offshore and international infrastructure equity partners will respectively contribute 51% and 49% of the $240 million project equity.