BW Offshore has signed a contract with Premier Oil for an FPSO to operate on the Catcher oil field in the UK North Sea.
The firm charter period of the contract is 7 years, with extension options of up to 18 years.
Based on a field life of 10 years, the contract is valued at USD 2.3 billion including FPSO charter rate and opex.
BW Offshore was awarded a FEED study as part of a funded tender process by Premier Oil in Q4 2012, and has performed extensive engineering studies on the project during 2013 and Q1 2014.
BW Offshore’s scope includes the delivery of the FPSO, mooring system, installation and operation of the unit throughout the charter period.
The FPSO will have a processing capacity of 60,000 bopd and a storage capacity of 650,000 bbl. BW Offshore will order a new built hull from Japan for the project, while conversion and integration work will be performed in Singapore. The FPSO shall be ready for production mid-2017.
The project will be financed by a project specific bank facility of USD 800 million and BW Offshore’s existing liquidity.
BW Offshore, May 2, 2014