Marine Link
Monday, September 26, 2016

Bergesen Signs Contract for FPSO

October 17, 2006

Bergesen Worldwide Offshore Ltd (BWO) has signed a contract with Peak Petroleum Industries Nigeria Ltd and Equator Exploration Ltd for the use of an FPSO at the Bilabri Field, located in Block OML 122, offshore Nigeria. BWO will use the FPSO BW Endeavor, to be renamed BW Peace, for the services and operations. The terms and provisions of the contract are the lease and operation of a FPSO for a fixed period of 3 years with the Companies option to extend the contract for up to a total of 10 years. The operation on the Bilabri field is planned to commence during second half of 2007. The hire rate will consist of a fixed day rate plus a production incentive rate. The nominal value of the fixed day rate of the full term contract, including options, but excluding the production incentive rate, is approximately $259m. Based on the estimated recoverable reserves, the production incentive rate has a nominal value of up to $ 68m. BWO expects, that when the FPSO is ready and producing at the field, the fixed day rate in the contract will generate an annual EBITDA of $17.4m. In addition BWO will receive the production incentive rate that will be charged on a fixed dollar per barrel of oil-produced basis.


Maritime Reporter Magazine Cover Sep 2016 - Maritime & Ship Security

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News