BW Offshore has clinched a $4.6bn contract to build and operate a floating production, storage and offloading vessel in Australia.
It signed a 15-year deal with domestic producer Santos for operations on the Barossa gasfield, 300km off Darwin in the far north of the country.
The contract comes with 10 years of options.
A final investment decision on the project was made on Tuesday. Initial gas production from the FPSO is expected during the first half of 2025.
Oslo-listed BW Offshore will be responsible for the engineering, procurement, construction, installation and operation of the turret-moored newbuilding, which will be based on the company's RapidFramework design.
The new FPSO will have processing capacity for up to 800m cubic feet of gas per day. It will also be able to process 11,000 barrels per day of stabilised condensate.
Its topside weight will be 35,000 tonnes.
"This award confirms our ability to leverage extensive operational and development capabilities to win and execute offshore energy transition-related projects," chief executive Marco Beenen said.
Financing talks advanced
"The Barossa FPSO represents a new type of infrastructure-like contract for BW Offshore, with attractive long-term returns, supported by strong partnerships with equity co-investors and banks."
Capital expenditure of around $2bn will be financed by banks and equity partners, as well as $1bn in total advanced lease payments during the construction period.
A lending syndicate will provide credit over 14 years.
BW Offshore will contribute 51% of the project equity, with "international infrastructure equity partners" adding the rest.
The debt and equity agreements are well advanced, the company said.
BW Offshore signalled a diversification from its oil and gas reliance by investing €60m ($72.5m) in floating offshore wind technology developer Ideol in February.
It was renamed BW Ideol and is preparing a listing as a separate company in Oslo.
BW Offshore expects to own about 50% of the company after the initial public offering.
