Offshore staff
OSLO, Norway – BW Offshore has secured $1.150 billion for the construction and operation of the FPSO that will operate at the Santos-operated Barossa gas field off Australia.
Nine international banks provided the combined construction and long-term debt facility. The company expects to gradually draw down the loan over the course of the project period. The financing will become non-recourse once the FPSO has been completed and the pre-completion guarantee has been released. The facility has a tenor of 14 years with a balloon at maturity.
The loan carries a base interest rate plus 2.50% margin during construction and 2.25% margin during the operational phase, the company said.
The Barossa FPSO services contract has an initial production period of 15 years, with options to extend for a further 10 years. The contract value based on the initial production period of 15 years is $4.6 billion.
BW Offshore will be responsible for engineering, procurement, construction, installation, and operation of the FPSO. The FPSO will be turret moored with a newbuild hull based on the company’s RapidFramework design.
Initial gas production from the FPSO is expected during the first half of 2025.
09/01/2021
