BW Offshore has announced that it has signed a contract with Santos for the supply of an FPSO for the Barossa gas field offshore Australia.
The lease and operate contract has a firm period of 15 years, with 10 years of options. The firm period contract value is $4.6bn, and BW Offshore will be responsible for engineering, procurement, construction, installation, and operation of the FPSO.
The FPSO unit has a processing capacity for up to 800m standard cu ft per day of gas and design capacity of 11,000 barrels per day of stabilised condensate. Initial gas production from the FPSO is expected during the first half of 2025.
“This award confirms our ability to leverage extensive operational and development capabilities to win and execute offshore energy transition related projects. The Barossa FPSO represents a new type of infrastructure-like contract for BW Offshore with attractive long-term returns, supported by strong partnerships with equity co-investors and banks,” said Marco Beenen, CEO of BW Offshore.
A syndicate of international project finance banks will provide 14-year debt financing during both construction and operation. BW Offshore and international infrastructure equity partners will contribute 51% and 49% of the project equity respectively.