By Tan Hwee Hwee
Norwegian BW Offshore expects to start work as early as November on the P-63 floating production storage offloading vessel for Petrobras’ Papa Terra field.
BW Offshore won a letter of intent from Petrobras for the FPSO supply earlier this month.
The Norwegian contractor has earmarked ultra large crude carrier BW Nisa for conversion.
A decision on the yard contract, however, will only be made after the final contract is signed, now expected in November.
BW Offshore has previously worked with Singapore’s Keppel Shipyard to deliver two FPSO projects.
Asked if the P-63 FPSO conversion will go to a Singapore shipyard, BW Offshore’s chief executive Carl Arnet said the contractor is obliged to evaluate possibilities outside Singapore in response’s to clients’ expectations to deliver on cost efficiency.
However, Arnet also acknowledged Singapore has “a very efficient model for yard work”.
The Chinese shipyards could deliver painting, cleaning and steel work at very low cost, but FPSO conversion is undertaken more in Singapore than elsewhere in the world, he said.
BW Offshore has clinched the deal for P-63 but withdrawn from the tender round for two other FPSO projects for Petrobras’ Iara and Guara fields.
Arnet said the decision to withdraw from the tender was made due to the tight timeline for bid preparation.
The FPSO contractor is also more inclined to bid for conventional projects involving an investment of US$400 million to US$500 million and a multi-year lease, according to Arnet.
Arnet was speaking at the naming ceremony of BW Pioneer, the latest addition to BW Offshore’s FPSO fleet.
The FPSO is equipped with a disconnectable turret mooring system, deemed more cost effective than other alternative to cope with the hurricane-prone environment in the Gulf of Mexico, according to Arnet.
The production unit is set to sail away in January 2010 and will be installed in a record 2600 metres of water. BW Offshore expects the first oil to flow in the same quarter.
The Norwegian contractor has earmarked ultra large crude carrier BW Nisa for conversion.
A decision on the yard contract, however, will only be made after the final contract is signed, now expected in November.
BW Offshore has previously worked with Singapore’s Keppel Shipyard to deliver two FPSO projects.
Asked if the P-63 FPSO conversion will go to a Singapore shipyard, BW Offshore’s chief executive Carl Arnet said the contractor is obliged to evaluate possibilities outside Singapore in response’s to clients’ expectations to deliver on cost efficiency.
However, Arnet also acknowledged Singapore has “a very efficient model for yard work”.
The Chinese shipyards could deliver painting, cleaning and steel work at very low cost, but FPSO conversion is undertaken more in Singapore than elsewhere in the world, he said.
BW Offshore has clinched the deal for P-63 but withdrawn from the tender round for two other FPSO projects for Petrobras’ Iara and Guara fields.
Arnet said the decision to withdraw from the tender was made due to the tight timeline for bid preparation.
The FPSO contractor is also more inclined to bid for conventional projects involving an investment of US$400 million to US$500 million and a multi-year lease, according to Arnet.
Arnet was speaking at the naming ceremony of BW Pioneer, the latest addition to BW Offshore’s FPSO fleet.
The FPSO is equipped with a disconnectable turret mooring system, deemed more cost effective than other alternative to cope with the hurricane-prone environment in the Gulf of Mexico, according to Arnet.
The production unit is set to sail away in January 2010 and will be installed in a record 2600 metres of water. BW Offshore expects the first oil to flow in the same quarter.
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