BW Offshore wins extension deal for sold FPSO

FPSO operator BW Offshore has received a contract extension for an FPSO operating offshore Indonesia, which the company has recently sold as part of its strategy to divest non-core assets to progress its transition to floating energy infrastructure investments.

BW Offshore informed on Wednesday it had received a one-year contract extension for the lease and operation of the FPSO BW Joko Tole.

As previously reported, BW Offshore has entered into an agreement to divest the FPSO. The sale was made to PT Bahari Inti Tanker and PT Cahaya Haluan Pasifik, both of which are Indonesian companies, in consortium with PT Buana Lintas Lautan Tbk, a company publicly listed in Indonesia. The consortium will continue to operate the FPSO under the lease contract with Kangean Energy Indonesia.

The transaction is expected to close late in the first quarter of 2022 and the sale will free up over $50 million of liquidity on closing.

BW Offshore said it will provide transition services for a period of up to four months after closing to ensure safe and uninterrupted transfer of operations including the local organisation operating the FPSO to the new buyer.

BW Joko Tole is a gas-producing FPSO operating on the TSB field offshore Indonesia where the first gas was achieved in mid-2012.