Skip to main content

Foinaven FPSO to be chartered by BP for 10 years

Published by
Oilfield Technology,


Teekay Corp. has entered into a new bareboat charter contract with Britoil Ltd, a subsidiary of BP, for the Petrojarl Foinaven (Foinaven) FPSO unit for up to approximately 10 years.

Under the terms of the contract, Teekay is expected to receive an upfront payment of approximately US$67 million in cash, a nominal per day rate over the life of the contract, and a lump sum payment at the end of the contract period, which is expected to cover the costs of recycling the FPSO unit in accordance with the EU Ship Recycling Regulations.

As part of the transaction, Teekay Offshore Partners L.P., now known as Altera Infrastructure L.P. (Altera Infrastructure) has entered into agreements with Britoil directly to provide the operations and shuttle tanker services for the Foinaven FPSO.

“We are pleased to announce this new contract for the Foinaven FPSO, which allows our customer to continue to maximise the value of the Foinaven field whilst eliminating Teekay’s operational exposure to the FPSO unit,” commented Kenneth Hvid, Teekay’s President and CEO. “The new contract further reduces our exposure to the offshore business, which is a strategic priority, improves our profitability, and allows us to further delever and strengthen our balance sheet.”

BP North Sea Regional President, Ariel Flores, said: “This new arrangement will enable BP and its joint venture partner RockRose Energy to introduce an innovative contractual framework for the FPSO’s operating services and shuttle tanker provision, giving BP greater influence over the strategic direction of operations, while allowing us to build on our existing strong relationship with Altera Infrastructure. It will also help ensure safe, reliable and efficient operations out to at least 2025 and give us space to set the Foinaven area up for future success.”

Altera Infrastructure FPSO President, Chris Brett, commented: “We are proud of our 24 years of continuous operations on the Foinaven field in the harsh West of Shetlands environment. This innovative new contractual model allows us to keep providing our unique competency to BP and their partners as we work together to extend the Foinaven field safely into the future.”

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/30032020/foinaven-fpso-to-be-chartered-by-bp-for-10-years/

You might also like

Howden secures compressor contract for Majnoon oilfield, Iraq

Howden will supply two screw compressor packages to Majnoon oilfield, near Basrah, Iraq. With Howden’s compressor solution, the Majnoon oilfield will save 42 242 t of carbon emissions per year – the equivalent of annual fossil fuel emissions for 9100 cars.

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Upstream news BP news Offshore news Oil & gas news