BW on Friday confirmed it had closed the transaction for the sale of the FPSO BW Joko Tole to a consortium of Buana Lintas Lautan, Bahari Inti Tanker and Cahaya Haluan Pasifik.
BW earlier this year received a one-year contract extension for the lease and operation of the gas FPSO on the TSB field. The company previously stated it would provide transition services for up to four months after the sale had closed to ensure the safe and uninterrupted transfer of operations.
“The transaction follows our strategy of optimising 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,” Marco Beenen, BW Offshore chief executive earlier said.
“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.”
The FPSO divestment is part of BW Offshore’s strategy to transition to floating energy infrastructure investments.
The sale frees up more than US$50 million of liquidity and releases US$9 million of working capital on closing. There is no debt attached to the FPSO. However, BW expects to book a loss of around US$23 million from the transaction and a tax expense of approximately US$12 million from the write-down of a related deferred tax asset.
These non-cash items will be recorded in the accounts for the fourth quarter of 2021.