Oslo-headquartered BW Offshore has made arrangements to keep its floating production, storage and offloading (FPSO) vessel occupied until the end of the current decade on its ongoing duty in the North Sea on the UK Continental Shelf (UKCS).
While announcing a contract extension FPSO BW CatcherBW Offshore revealed an agreement with Field catcher Partners to amend the contract term for the ship. This unit is deployed at the Harbor Energy-operated Catcher field, approximately 173 kilometers south-east of Aberdeen, with associated fields, including Varadero, Burgmanand Laverda.
Marco BeninBW Offshore CEO commented: “We are strengthening the long-term commercial framework for BW Catcher, adding visibility to tangible cash flow, while also improving our ability to market the unit for future opportunities.
“The Catcher FPSO is a high-specification, harsh-environment asset, making it a highly valuable redeployment unit. In today’s strong FPSO market, contractual clarity and enhanced flexibility are key drivers to unlock additional value over time.”
These amendments, which will come into effect from the beginning of February 2026, will reportedly transform the current contract into an agreement with a fixed end-of-term framework until December 31, 2030, and remove the previous unilateral options for a one-year extension.
This is expected to increase the Company’s operating cash flow accrual of approximately $490 million as of that date. As the revised contract structure provides BW Offshore with clarity on the contract end timeline, it has been interpreted to enable active marketing of the FPSO for new redeployment projects.
The updated terms are deemed to reflect a discount equivalent to 10% of the vessel’s current charter day rate, applied as compensation against the O&M day rate.
In addition, the parties agreed to a revised production tariff structure from 2028, which sets a cap linked to prevailing oil prices, while maintaining the current tariff framework.
This FPSO extension follows shortly after BW Offshore beat Front-end engineering and design (FEED) deal for an FPSO scheduled to operate on the Equinor oil project offshore Newfoundland and Labrador, Canada.
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