BW Offshore Secures $1.15 B Loan for Barossa FPSO Construction

September 1, 2021

World Energy Reports LLC.
credit-offshorescreenshot-123017.jpg

FPSO supplier BW Offshore has secured a $1.15 billion loan for the construction and operation of the FPSO for Australia-based Santos' Barossa offshore gas field.

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.  

The Lease and Operate contract has a firm period of 15 years, with 10 years of options. The firm period contract value is USD 4.6 billion. BW Offshore is responsible for the engineering, procurement, construction, installation, and operation of the FPSO.

In a statement on Tuesday, BW Offshore said that the combined construction and long-term debt facility had been provided by a syndicate of nine international banks. 

The $1.15 billion loan will be gradually drawn over the course of the project period. 

"The financing will become non-recourse once the FPSO has been completed and the pre-completion guarantee has been released. The facility has a tenor of 14 years with a balloon at maturity. The loan carries a base interest rate plus 2.50% margin during construction and 2.25% margin during the operational phase," BW Offshore said.

The FPSO will be turret moored with a newly built hull based on BW Offshore's RapidFramework design. According to BW Offshore, its Rapid Framework® concept is based on experience from the development of the Catcher FPSO in 2017, allowing for concurrent hull construction and topside integration by removing interdependencies during the construction phase. The design, according to BW Offshore, can accommodate the most advanced topsides. For Barossa, the topside weight is expected to be approximately 35,000 tons.

The FPSO will be built in South Korea and Singapore before being towed and permanently located in the field where it will process natural gas prior to its transport via pipeline to Darwin LNG. Condensate will be stored on the FPSO for periodic offloading.

Barossa will provide the next source of gas for the existing Santos-operated Darwin LNG plant once current reserves from the Santos-operated Bayu-Undan field in the Timor Sea have been depleted.

Initial gas production from the FPSO is expected during the first half of 2025.

Floating Production Week delivers unrivaled overview, insight and analysis to the Offshore Floating Production Systems and Technology market

Floating Production Systems Report And Online Database

  • Annual five year outlook and forecast – At the start of each year we prepare a detailed assessment of future deepwater development and forecast the pace of orders for floating production systems over the next five years. Our 2021 annual report looks at market conditions likely to prevail through 2025 and provides our assessment of which of the 200+ floater projects in the planning queue will reach the final investment decision by end-2025
  • Monthly reports - Our monthly reports provide a detailed snapshot of the business sector as of the middle of each month. More than 100 pages of data and industry analysis each month. Excel spreadsheets with each report enable subscribers to tailor the data presentation to their needs. In our May report we revisit the annual forecast and make revisions as needed.
  • Online database - The online database is updated every day – with information direct from primary sources. In the database are details for 200+planned projects, 390+ installations in service, 40+ floaters on order and 40+ floaters available. The database is fully searchable. Customized charts and spreadsheets can be directly produced from the database. Data are easily exported to excel spreadsheet.
  • Customer support - We are available to assist with technical questions about information in the database and reports -- and assist with any questions about using the database search tools.

Here's what you get!

Request a Demo