BW Offshore Clinches $875MM Gas FPSO Contract in Indonesia

BW Offshore has signed a contract with Kangean Energy Indonesia for a gas FPSO to operate on the Terang Sirasun Batur fields in Indonesia. The partners of KEI are PT Energi Mega Persada (50.0%), Mitsubishi Corporation (25.0%) and Japan Petroleum Exploration (25.0%).

BW Offshore has signed the contract with its two Indonesian partners; PT Pelayaran Trans Parau Sorat and PT Energi Consulting Indonesia.

BW Offshore's scope includes the delivery of the FPSO, risers, umbilicals and mooring system, and BW Offshore will also be responsible for the installation and operation of the unit. The design, fabrication and installation of the mooring system will be executed by BW Offshore's technology division APL.

The FPSO will have a capacity of 340 mmscfd of gas compression and conditioning, and the gas will be exported to the East Java Gas Pipeline.

The charter contract is for a fixed period of 10 years, plus additional options of up to 4 years. The total contract value is approximately US $875 million. First gas is planned for early 2012.