The extension is related to the early-stage engineering works and supply of an FPSO for the Gato do Mato oil and gas field offshore Brazil and is subject to financing and the project reaching a final investment decision (FID)
Shell, partners extend LNTP for Gato do Mato field. (Credit: Jethro Carullo on Unsplash)
Shell Brasil Petróleo, the Brazilian subsidiary of Shell, together with its partners, has extended the limited notice to proceed (LNTP) period with BW Offshore and Saipem for the Gato do Mato development offshore Brazil.
Valid until 15 February 2023, the extension is related to the early-stage engineering works and supply of an FPSO for the Gato do Mato oil and gas field.
Once the extension period is completed, BW Offshore and Saipem can be awarded the contract for the lease and operation of the field.
The award is subject to financing and the project reaching a final investment decision (FID).
If the project reaches FID, BW Offshore and Saipem will be awarded the FPSO lease and operate contract for a firm period of 18 years, with options to extend for a further seven years.
BW Offshore is a Norway-based owner and operator of floating production storage and offloading vessels. Saipem is an oilfield services company, based in Italy.
The Gato do Mato project is a pre-salt gas-condensate discovery that is located in two blocks, BM-S-54 and Sul de Gato do Mato.
In May this year, Shell and its partners initially awarded an LNTP for the supply of FPSO for the Gato do Mato field, which is valued at up to $50m.
Through the LNTP, Shell and its partners aim to award a lease and operate contract to a consortium comprising BW Offshore and Saipem.
The consortium will jointly provide the engineering, procurement, construction, and installation (EPCI) services for the FPSO, which is expected to be delivered in 2026.
BW Offshore CEO Marco Beenen then said: “We have a clear strategy of developing and operating infrastructure-type floating production solutions with long-term contracts and investment grade counterparties. Gato do Mato is a robust project meeting all our requirements.
“We will replicate the Barossa project model, bringing in equity partners, and take it one step further by partnering with Saipem for the EPCI phase to add execution capacity and capabilities.”