Oslo-listed floater specialist BW Offshore has received a one-year contract extension for the lease and operation of the floating production storage and offloading (FPSO) BW Joko Tole it agreed to sell earlier this year.
The 1988-built BW Joko Tole is a gas producing FPSO operating on the TSB field offshore Indonesia. Indonesian companies PT Bahari Inti Tanker and PT Cahaya Haluan Pasifik in consortium with PT Buana Lintas Lautan Tbk are expected to take over the vessel in the first quarter of this year and operate it under the lease contract with Kangean Energy Indonesia.
For BW Offshore, the sale will free up over $50m of liquidity on closing. Under the deal, the company will provide transition services for a period of up to four months after closing to ensure a safe and uninterrupted transfer of operations, including the local organisation operating the FPSO to the new buyer.