BW Offshore Secures $200 Million Financing for North Sea FPSO
Posted 28/08/2023 11:47
BW Offshore, the Norwegian FPSO operator, has successfully secured a new $200 million financing arrangement for one of its floating production storage and offloading (FPSO) vessels operating in the UK sector of the North Sea. The financing involves a consortium of seven international banks.
The FPSO in question, named "Catcher," is owned and operated by BW Offshore and is currently engaged in operations at the Catcher field, operated by Harbour Energy. This field is situated in block 28/9a of the UK central North Sea, approximately 174 kilometers from Aberdeen, operating at water depths of about 90 meters.
The Catcher FPSO plays a crucial role in production, with 20 subsea wells tied back to it, facilitating production and water injection. The field has seen successful production from various wells, with the first oil delivered in December 2017, followed by Varadero in January 2018 and Burgman in May 2018. Oil is offloaded by tankers, while gas is reinjected into the reservoir.
The new financing facility is priced at a margin of 225 basis points above USD SOFR (Secured Overnight Financing Rate). The closing of the facility is anticipated shortly upon completion of the necessary conditions.
BW Offshore's commitment to enhancing the oil and gas segment involves redeploying existing FPSOs and divesting non-core assets. They have already completed the sale of several FPSOs and are actively working towards further improvements. The company's strategic approach positions them for growth while maintaining operational excellence.
This financial arrangement exemplifies BW Offshore's ability to secure favorable funding to support its ongoing operations, reflecting their industry expertise and commitment to sustainable growth.