Altera Infrastructure has extended a charter for one of its floating production, storage and offloading vessels until at least March 2022 — but at a lower rate.
The deal with Shell for the 63,000-barrel-per-day Petrojarl Knarr on the Knarr field off Norway had been due to expire next March.
The unit has been operating there under a firm contract since 2015.
A fee had been due to the former Teekay Offshore if the contract was not stretched to 2025, with additional extension options after that. But this has now been removed under the new deal.
The amendment includes a reduction in day rate from March 2021 to March 2022.
But an additional production volume and oil price-related tariff has been introduced.
The amendment terminates Shell's purchase option on the vessel and provides for a mutual right to terminate the contract on six months’ notice without payment of penalty, after March 2022.
"We are pleased to announce this important FPSO contract extension for the Petrojarl Knarr, and we are committed to work together with the licence partners to continue to operate safely and maximise production on the field," said Chris Brett, president of Altera Infrastructure FPSO.
"The contract amendment provides important visibility for the next period of operations and it also enables us to position the vessel for the next re-deployment."
