The FPSO, operated by ExxonMobil, has been producing on the Jotun field located in the Norwegian sector of the North Sea since 1999.
Terms of the agreement call for its current owners to lease back the FPSO from the newly formed partnership by means of a Bareboat Charter having a minimum term of five years with the possibility to extend the contract up to 15 years. Bluewater will hold 55% ownership in the FPSO, with Standard Marine Nordsjo AS (SMNAS) holding the remaining 45%. The transaction includes an option for possible transfer of ownership between SMNAS and Bluewater at termination of the lease contract.
The Bareboat Charter is expected to continue for the remaining life of the Jotun field, and the field life will be dependent on product prices, costs and other activities in the area. ExxonMobil will continue to operate the FPSO.
The FPSO Jotun A has a storage capacity of 584,400 bbl (AFRAMAX size tanker) and was built by Kvaerner Masa (now Aker Finnyards). At its peak the FPSO was processing around 145,000 bbls/d, ranking it among the highest capacity FPSOs in the North Sea.
"This is an important step into the Norwegian market for Bluewater," stated Hugo Heerema, President of Bluewater Energy Services B.V. "This vessel was designed and built to a very high standard to withstand the extremely harsh environment of the North Sea. It complies with all the stringent Norwegian regulatory and statutory requirements. Therefore, it is an asset that fits well with Bluewater's strategy of investing in the highest quality FPSOs. As well, Norway has long been recognised as an important oil and gas region, and we are very pleased to enter into this partnership with ExxonMobil in Norway.
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