BW Offshore has successfully completed the Interim Performance Test (IPT) for its BW Opal floating production, storage and offloading (FPSO) vessel, which is deployed on Santos' Barossa gas project offshore Australia. This milestone confirms that the FPSO's key production, processing, and utility systems are operating in an integrated manner and can deliver stable performance under production conditions.

Background and Timeline

The BW Opal has faced several technical challenges since its deployment. Originally scheduled for Practical Completion in the fourth quarter of last year, then aimed for the first quarter of this year, the vessel experienced technical glitches that led to a shutdown of the Barossa project earlier this year, just months after start-up. However, offshore commissioning is now back on track following a production restart in early May.

Current Status and Operations

Following the restart, the BW Opal has resumed gas production and export, managed in close coordination with Santos during the ramp-up and commissioning phase. BW Offshore remains focused on safe and stable operations, completing remaining commissioning activities, and progressing toward Practical Completion.

Contractual and Financial Implications

Practical Completion will mark the commencement of the firm 15-year contract period for the newbuild BW Opal, which has a handling capacity of 850 million cubic feet per day of gas and 11,000 barrels per day of condensate. First gas at Barossa last September triggered 60% of BW Offshore's contractual dayrate under the FPSO's charter. The successful IPT increases the payable dayrate to 85%. Practical Completion will conclude the delivery phase, initiating 100% of the dayrate and securing long-term revenues for the company.

Previous Technical Issues

The commissioning process has not been smooth, with earlier issues including the need to replace dry gas seals on the floater's compressors and the flushing and cleaning of heat exchangers to remove blockages. These challenges delayed progress but have now been addressed as the project moves toward final completion.