Oslo-listed FPSO owner BW Offshore has agreed to sell the FPSO BW Joko Tole to PT Bahari Inti Tanker and PT Cahaya Haluan Pasifik, both of which are Indonesian companies, in consortium with PT Buana Lintas Lautan Tbk, a company publicly listed in Indonesia.
The consortium will continue to operate the FPSO under the lease contract with Kangean Energy Indonesia, BW Offshore said.
"The transaction is part of BW Offshore's strategy to transition to floating energy infrastructure investments. The sale will free up over USD 50 million of liquidity, comprising of net sale proceeds of USD 42.5 million and the release of USD 9 million of working capital upon closing. There is no debt attached to the FPSO. The company expects to book a loss from the transaction of around USD 23 million and a tax expense of approximately USD 12 million from the write-down of a related deferred tax asset," BW Offshore said.
"The transaction follows our strategy of optimizing value from the non-core FPSO fleet, which includes divesting assets with marginal contracts close to end of the firm period, while progressing our transition to floating energy infrastructure investments," said Marco Beenen, the CEO of BW Offshore.
"We are pleased that the BW Joko Tole has found a new owner with a strong local connection which will continue to operate the unit in Indonesia."
BW Offshore said that the transaction was subject to customary conditions precedent with closing expected late in the first quarter of 2022.
BW Offshore will provide transition services for a period of up to four months after closing to ensure safe and uninterrupted transfer of operations including the local organization operating the FPSO to the new buyer. The BW Joko Tole is a gas-producing FPSO operating on the TSB field offshore Indonesia.