BW Offshore has reported an operating revenues dip despite landing a major North Sea contract win.
The firm, which provides floating production services to the oil and gas industry, reported a first quarter operating revenue of $237million compared to last year’s $260million. BW Offshore said the decrease was due to the gross effects from reimbursable elements on the Papa Terra project in the previous quarter.
However, despite the revenue dip BW Offshore’s financial future looks bright.
The firm confirmed a deal with Premier Oil for a FPSO to operate on the Catcher field in the North Sea in the same quarter.
The seven-year contract includes extension options for up to 15 years.
Based on an expected 10 year field life, the contract value is $2.3billion.
BW Offshore was first contracted in during the fourth quarter of 2012 to perform the FEED study as part of the funded tender process. BW Offshore will deliver the FPSO, mooring system installation and operation of the unit throughout the charter period.
The FPSO will have a processing capacity of 60,000 bopd.
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