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