Shell Brasil Petróleo Ltda (Shell) has extended the limited notice to proceed (LNTP) with BW Offshore and Saipem SPA for supply of an FPSO for Gato do Mato oil and gas field in Block S-M-518 of Santos basin presalt, offshore Brazil.
Upon completion, Shell and partners expect to award a lease and operating contract to a consortium of BW Offshore and Saipem SPA, which will be jointly responsible for engineering, procurement, construction, and installation (EPCI) of the FPSO with expected delivery in 2026 (OGJ Online, May 27, 2022).
This extension is valid until Feb. 15, 2023. Upon completion of the extension period, the service providers have the option to be awarded the lease and operate contract—for a firm period of 18 years plus 7 years of options—contingent on financing and the project reaching final investment decision (FID).
The LNTP is valued up to $50 million.
Shell is operator at Gato Do Mato (50%) with partners Ecopetrol (30%) and TotalEnergies (20%).
