BW Offshore an Oslo Stock Exchange listed company has said that it has settled the completion of the USD 1.150 billion project debt financing for the construction and operation of the FPSO for the Barossa gas field operated by Santos’ subsidiary Santos NA Barossa Pty Ltd on behalf of its joint venture partners.  

The combined construction and long-term debt facility has been provided by a syndicate of 9 international banks. The facility will be gradually drawn over the course of the project period. The financing will become non-recourse once the FPSO has been completed and the pre-completion guarantee has been released. The facility has a tenor of 14 years with a balloon at maturity. The loan carries a base interest rate plus 2.50% margin during construction and 2.25% margin during the operational phase.

The Barossa FPSO Services contract has an initial production period of 15 years, with options to extend the production period (in the aggregate) for a further 10 years. The contract value based on the initial production period of 15 years is USD 4.6 billion. BW Offshore will be responsible for engineering, procurement, construction, installation, and operation of the FPSO. The FPSO will be turret moored with a new built hull based on BW Offshore’s RapidFramework® design. Initial gas production from the FPSO is expected during the first half of 2025.

BW Offshore engineers innovative floating production solutions. The Company has a fleet of 14 FPSOs with potential and ambition to grow. By leveraging four decades of offshore operations and project execution, the Company creates tailored offshore energy solutions for evolving markets world-wide. BW Offshore has around 2,000 employees and is publicly listed on the Oslo Stock Exchange.