Credit: BW Offshore
FPSO leasing firm BW Offshore on Friday announced a partnership with international global infrastructure investors for the equity financing of the FPSO for Santos’ Barossa gas field offshore Australia.
Earlier this year Santos and BW Offshore signed a contract for the delivery of an FPSO for the Barossa gas field, located 300 kilometers offshore Darwin in Australia.
Following the announcement on Friday, the Barossa FPSO JV shareholding is as follows: BW Offshore Limited – 51%; ICMK Offshore Investment Pte Ltd (a 50:50 JV of ITOCHU Corporation and a subsidiary of Meiji Shipping Co Ltd) – 25%; and Macquarie Bank Limited – 24%.
“The joint venture agreement has been signed by all parties and completion of the agreement is subject to certain customary regulatory approvals which are expected within the next month,” BW Offshore said.
The lease and operate contract between BW Offshore with Santos has a firm period of 15 years, with 10 years of options. The firm period contract value is $4.6 billion. BW Offshore is responsible for the engineering, procurement, construction, installation, and operation of the FPSO.
Initial gas production from the turret-moored FPSO is expected during the first half of 2025.
The Barossa FPSO will be financed by a 14-year combined construction and long-term debt facility of USD 1.15 billion and USD 240 million from the equity joint venture, as well as approximately USD 1 billion in pre-payments by Santos and the Barossa Upstream Joint Venture Partners during the construction period, BW Offshore said.
Earlier this month, BW Offshore secured a $1.15 billion loan for the construction and operation of the FPSO from a syndicate of nine international banks.
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