Floating Production Storage Tender

Contract Awarded for supply the floating production storage and offloading FPSO vessel for the 3.6bn Barossa offshore gas and condensate project in Australia.Under the contract BW Offshore will be responsible for the construction connection and operation of the vessel which will be leased and operated for 15 years alongside ten years of options.However the contract is subject to final investment decision FID on Barossa project by Santos and its partners. The decision is expected in the coming weeks.Additionally the contract includes an upfront pre-payment and an option to buyout. Santos further stated that the contract attains an overall reduction in capital costs of nearly 1bn.Santos managing director and CEO Kevin Gallagher said The decision to proceed with an FPSO services contract maintains a low ongoing operating cost while engineering enhancements have significantly reduced the projects carbon footprint. This reduction in capital expenditure makes Barossa one of the lowest cost of supply projects in the world for LNG and will provide new supply into a tightening LNG market. The FPSO unit for the Barossa gas and condensate project will have a capacity to process up to 800 million standard cubic feet per day MMscfd of gas and handle up to 11000 barrels per day of stabilised condensate.BW Offshore plans to build the FPSO in South Korea and Singapore. The processed natural gas from the FPSO will be exported to the Darwin LNG plant via the Darwin pipeline system.