BW Offshore, Premier Oil sign LOA for Catcher FPSO
OSLO, Norway -- BW Offshore has signed a Letter of Award (LOA) with Premier Oil for a FPSO to operate on the Catcher oil field in the UK North Sea.
The LOA will be converted into a final contract subject to final partner sanction and Department of Energy and Climate Change approval, expected to be completed during Q2 2014. The field is owned by Premier Oil (50%, operator), Cairn Energy (30%) and MOL (20%).
The firm charter period of the contract is 7 years, with extension options. Based on a field life of 10 years, the contract value is $2.3 bn 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.