BW Offshore Completes Debt Financing for Barossa FPSO
BW Offshore announced on August 31 the completion of the $ 1.15 billion project debt financing for the construction and operation of the production, storage and offloading floating vessel (FPSO) of the operated Barossa gas field. by Australian Santos.
The combined facility for construction and long-term borrowing was provided by a syndicate of nine international banks. The facility will be used gradually over the life of the project. The financing will become non-recourse once the FPSO is completed and the pre-completion guarantee released, BW Offshore said. The facility has a term of 14 years with a mature balloon. The loan has a base interest rate plus a margin of 2.50% during construction and 2.25% during the operation phase.
Santos awarded the FPSO Barossa contract to BW Offshore in March this year. The final investment decision to continue the Barossa project, located off the Northern Territory, was also taken the same month.
The Barossa FPSO service contract has an initial production period of 15 years, with options to extend the production period for another 10 years. The contract value based on the initial 15-year production period is $ 4.6 billion.
BW Offshore will be responsible for the engineering, procurement, construction, installation and operation of the FPSO. The FPSO will be moored to the turret with a new hull built based on BW Offshore’s RapidFramework design. Initial gas production from the FPSO is expected in the first half of 2025.
The Barossa development will include an FPSO vessel, subsea production wells, supporting subsea infrastructure and a gas export pipeline connected to the existing Bayu-Undan pipeline at Darwin LNG. Santos had shifted FID to Barossa last year due to a collapse in oil prices induced by a pandemic.