Bluewater's FPSO Sale and Financial Outlook

Bluewater, a Dutch company, is nearing the sale of its Glas Dowr floating production, storage, and offloading (FPSO) vessel, one of two units it has struggled to redeploy for years. The Glas Dowr and Munin FPSOs have been marketed unsuccessfully and are currently laid up in Southeast Asia. Aurelia Energy, Bluewater's holding group, reported in its first quarter that the sale of Glas Dowr is at an "advanced stage," with expected net proceeds of at least $10 million and annual savings of $3 million to $4 million in lay-up costs. Upstream market sources speculate the vessel may be sold to a Southeast Asian contractor or sent to a scrap yard.

The Glas Dowr was converted from an oil tanker into a harsh-environment FPSO in 1995 and began operations in the UK North Sea in 1997. It later served offshore South Africa and Australia until the end of 2015. Meanwhile, Bluewater's 2025 Annual Report indicates a promising outlook for 2026, with its Aoka Mizu FPSO being reassigned to the Sea Lion project in the Falkland Islands under a 12-year fixed contract. Additionally, the Haewene Brim and Bleo Holm FPSOs continue operating in UK North Sea fields.

Bluewater also announced it has mandated Clarksons Securities and Pareto Securities as joint bookrunners for a potential $175 million senior unsecured amortizing bond issue with a five-year tenor. Net proceeds would fully refinance Bluewater's existing senior unsecured bond ($120 million outstanding) and term loan ($35 million outstanding), as well as support general corporate purposes.