bp PLC has completed sale and lease back of the Greater Tortue Ahmeyim (GTA) floating, production, storage, and offloading (FPSO) vessel with an affiliate. The transaction secures additional funding for partner Kosmos Energy’s future GTA development costs. The FPSO is being built in China by Technip Energies NV. Delivery is expected late third-quarter 2022.
So far in 2021, Keppel Shipyard Ltd. has installed the four remaining sponsons on the 2.5-million tonne/year Gimi floating LNG plant being built in Singapore also to be deployed as part of GTA development. FPSO living quarters also have been installed, seven breakwater caissons have been transported offshore and three installed, and all four subsea trees have been built.
bp, as GTA operator (bp operator), with the consent of the GTA unit participants and the respective countries, agreed to sell the GTA FPSO to an affiliate. The FPSO will be leased back to bp operator under a long-term lease agreement, for exclusive use in the GTA project. bp operator will continue to manage and supervise the construction contract with Technip. Delivery of the FPSO to the affiliate will occur after construction is complete and the FPSO has entered international waters, with the lease to bp operator effective on the same date.
Capital expenditures associated with the GTA project in 2021 net to Kosmos had been estimated at around $350 million. With completion of the sale and lease back, Kosmos’ 2021 capital expenditures associated with the GTA project dropped to about $190 million, with remaining cash calls on the project for 2021 covered through the proceeds of the sale. The balance of sale proceeds, as well as additional savings from the transfer of remaining FPSO construction payments to bp, are expected to be largely realized in 2022. The company expects to refinance national oil company loans later this year, providing some $100 million in additional financing for the GTA project. Kosmos will reimburse bp operator for its pro rata share of cost under the lease agreement, which will be classified as an operating expense.
Tortue Ahmeyim field development is on the C-8 block offshore Mauritania and the Saint-Louis Profond block offshore Senegal. The field holds estimated gas resources of 15 tcf. The integrated gas value chain and near-shore LNG development will export LNG to global markets as well as supplying gas to Senegal and Mauritania (OGJ Online, Oct. 1, 2020).
bp operates Tortue with 61%. Partners are Kosmos 29%, Senegal-state Petrosen 5%, and Mauritania state firm SMHPM 5%.