BW Offshore: Update on FPSO Umuroa
With reference to stock exchange release dated 14 October 2019.
Following the termination of the FPSO contract and recent developments, BW Offshore Limited (BWO) has assessed contractual hire which is due but not paid by the client Tamarind Resources for the FPSO Umuroa. The assessment has identified uncertainties related to payment of outstanding overdue hire and payment of future hire until the termination date 31 December 2019.
The potential total EBITDA exposure for both past and future hire could be up to USD 23 million by end of 2019. BWO will seek to recover all outstanding hire from Tamarind Resources and its parent company under the provisions of the existing contracts.
For the third quarter of 2019, BWO will book a provision related to the overdue charter-hire impacting EBITDA of approximately USD 10 million.
The Umuroa is a versatile turret-moored FPSO, making it an attractive redeployment candidate for field development.
For further information, please contact:
Ståle Andreassen, CFO, +65 97 27 86 47
Anders S. Platou, Head of Corporate Finance, +47 99 50 47 40
About BW Offshore:
BW Offshore is a leading provider of floating production services to the oil and gas industry. The company also participates in developing proven offshore hydrocarbon reservoirs. BW Offshore is represented in all major oil and gas regions world-wide with a fleet of 15 owned FPSOs. The company has more than 30 years of production track record, having executed 40 FPSO and FSO projects. BW Offshore is listed on the Oslo Stock Exchange.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.