BW Offshore awarded Letter of Intent for FPSO in Australia

(Bermuda, 7 July 2008) BW Offshore has been awarded a Letter of Intent for the design, conversion, installation and operation of the FPSO for the Australian oil and gas fields on Basker-Manta-Gummy with Anzon.
 
BW Offshore has been awarded a Letter of Intent (LoI) to supply the FPSO for the Basker-Manta-Gummy (BMG) oil and gas fields offshore Australia. The FPSO will commence operation early Q2 2010. The contract is for a fixed period of five years, plus options to extend the contract for up to a total period of fifteen years. The contract has a nominal value for the total period of up to fifteen years, including installation, of USD 1,300 million.  
 
The FPSO will also include the delivery of an APL disconnectable Submerged Turret Production Buoy (STP), including swivel stack and mooring system.
 
We are very pleased with the confidence Anzon has put in us on this project. This will be our first FPSO in Australian waters and the project expands our global presence and will further strengthen our position as one of the world's leading FPSO contractors, says Svein Moxnes Harfjeld, CEO of BW Offshore.
 
BW Offshore will convert the tanker BW Endeavour from its inventory of conversion candidates. The FPSO will have a processing capacity of 40,000 barrels of oil and up to 120 mmscf gas per day with a storage capacity of 800,000 barrels of oil.
 
This project is our fourth FPSO contract in less than one year. These FPSOs will commence production from 2008 to 2010, doubling our fleet of operating FPSOs and contributing to strong growth in our earnings for the coming years, says Moxnes Harfjeld.
 
Through its clearly defined strategy for organic growth, BW Offshore has developed an FPSO team in Singapore consisting of highly experienced personnel to develop and execute projects in the Asia Pacific region.  This award is the first success of this team and will be managed in Singapore, with support from the Norwegian operational head quarters.
 
Our strategy to extend our geographical presence and expand our competence base is paying off. We will benefit from our experienced Asian organisation in the execution of this project, adding capacity in a market with strong demand for our services, says Moxnes Harfjeld.
 
 
For further information, please contact:
Svein Moxnes Harfjeld, CEO BW Offshore, +47 4140 4886
Knut R. Sæthre, CFO BW Offshore, +47 9111 7876
 
  
 
BW Offshore is one of the world's leading FPSO contractors and a market leader within advanced offshore loading and production systems to the oil and gas industry. BW Offshore has 25 years' experience and has successfully delivered 12 FPSO projects and 42 turrets and offshore terminals. BW Offshore's technology division APL has delivered solutions for production vessels, storage vessels and tankers in a wide range of field developments. Adapting through competence, in-house technology, solid project execution and operational excellence, BW Offshore ensures that customer needs are met through versatile solutions for offshore oil and gas projects.  BW Offshore has as a global network with offices in Europe, Asia Pacific, West Africa and the Americas. BW Offshore has 1,200 employees and is listed on the Oslo Stock Exchange. For more information, please visit www.bwoffshore.com and www.apl.no.