FPSO leasing firm BW Offshore said Thursday that Shell and its partners have extended the limited notice to proceed (LNTP) period with BW Offshore and Saipem in relation to the supply of an FPSO for the Gato do Mato oil and gas field offshore Brazil.
The extension is valid until February 15, 2023.
Upon completion of the extension period, BW Offshore and Saipem have the option to be awarded the lease and operate contract, contingent on financing and the project reaching final investment decision (FID).
If the project reaches FID and moves forward, the FPSO lease and operate contract will have a firm period of 18 years with seven years of options.
The two companies said back in June that they had secured a limited notice to proceed (LNTP) by BW Offshore, for the early-stage engineering services for the supply of an FPSO unit to be supplied to Shell for the development of the Gato do Mato field offshore Brazil.
The oil and gas field is located around 200 km offshore Brazil in the Santos Basin, in water depths of around 2,000 meters. It was then said the LNTP was valued at up to $50 million gross.
Saipem said at the time that, subject to firm contracts being secured, including the award of the engineering, procurement, construction, and installation (EPCI) of the FPSO, the FPSO could be delivered in 2026.
According to World Energy Reports, one of the most extensive FPSO information databases, the Gato do Mato unit is expected to have the capability to produce 90,000 b/d oil + up to 290 mmcf/d gas, have 250,000 b/d water injection capability, and storage for 1.6 million barrels of oil.
"Gas is to be exported via a 100+ km pipeline to the Mexilhao platform or reinjected...The Gato do Mato project will have four oil producer wells, four gas injectors and two water injectors. The field principally holds gas and condensates," World Energy Reports info shows.