Norwegian floating oil and gas production solutions provider BW Offshore has reached an agreement with the partners of the Catcher field to amend the contract for its BW Catcher floating production, storage, and offloading (FPSO) vessel. The agreement extends the contract until December 31, 2030, with a flexible window of plus or minus six months.

The revised agreement replaces the previous structure, which included a unilateral one-year extension option, with a clear framework for contract termination.

The company stated that the amendment will take effect from February 1, 2026, and is expected to increase BW Offshore's firm operating cash flow backlog by approximately $490 million from that date.

The updated structure also provides BW Offshore with greater clarity on the contract termination date, enabling the company to actively explore potential redeployment opportunities for the FPSO.

The BW Catcher has a storage capacity of 650,000 barrels and a daily processing capacity of 60,000 barrels. The FPSO is designed for a 20-year operational lifespan without interruption.

BW Offshore CEO Marco Beenen commented that the company is strengthening the long-term commercial framework for the BW Catcher, enhancing substantial cash flow visibility while improving its ability to market the vessel to capture future opportunities. The Catcher FPSO is a high-specification asset designed for harsh environments, making it a highly valuable redeployable unit. In the current strong FPSO market, enhanced contractual clarity and flexibility are key drivers for unlocking additional value over time.

Under the revised terms, the parties have agreed to a discount equivalent to 10% of the current bareboat charter day rate, which will be applied to offset the operational and maintenance day rate. The agreement also introduces a revised production rate structure starting in 2028, including a cap linked to prevailing oil prices, while maintaining the existing rate framework.