Oslo-listed floater specialist BW Offshore has sold the 1988-built floating production storage and offloading (FPSO) BW Joko Tole to Indonesian companies PT Bahari Inti Tanker and PT Cahaya Haluan Pasifik in consortium with PT Buana Lintas Lautan Tbk.
to Indonesian companies PT Bahari Inti Tanker and PT Cahaya Haluan Pasifik in consortium with PT Buana Lintas Lautan Tbk.The deal is expected to close in the first quarter of this year, after which the consortium will continue to operate the FPSO on the TSB field offshore Indonesia under the lease contract with Kangean Energy Indonesia.
The sale will free up over $50m of liquidity, comprising of net sale proceeds of $42.5m and the release of $9m of working capital upon closing. There is no debt attached to the FPSO. BW Offshore said it expects to book a loss from the transaction of around $23m and a tax expense of around $12mn from the write-down of a related deferred tax asset.
“The transaction follows our strategy of optimising value from the non-core FPSO fleet, which includes divesting assets with marginal contracts close to end of the firm period, while progressing our transition to floating energy infrastructure investments,” said Marco Beenen, the CEO of BW Offshore.
