BW Offshore has provided an operational and strategic update regarding its FPSO business, with a focus on the commissioning of a major new vessel and an ongoing strategic review.

BW Opal FPSO Commissioning at Barossa

The commissioning of the newbuild BW Opal FPSO at the Barossa field in Australia has encountered delays. These were caused by reinforcement work on seawater piping systems in late 2025 and compressor gas seal replacement works in early 2026. Despite these start-up problems, gas production is ongoing. The company targets reaching 100% output in the second quarter of 2026, which is also when the 15-year fixed contract is expected to formally commence. Currently, BW Offshore is receiving a 60% commissioning charter rate for the vessel.

Strategic Review and Market Outlook

In December 2025, BW Offshore engaged an external adviser to assist in a "limited" strategic review, a process initiated in response to incoming interest for the company amid a strong FPSO market. The company states that its core strategic focus on growing its FPSO business remains unchanged and is supported by an optimised capital structure and strong partnerships. The strategic review is ongoing, with no further details disclosed.

Leadership Commentary and Project Pipeline

Chief executive Marco Beenen expressed optimism, expecting EBITDA growth in 2026 as the BW Opal ramps up production. He also highlighted the advancement of the prestigious Bay du Nord FPSO project with Equinor and growth opportunities with the BW Elara within floating transition solutions. The company has three main targets for new FPSO contracts in the current year: Bay du Nord in Canada, Albacora in Brazil, and Kan in Mexico.

Fleet Overview

BW Offshore's fleet currently consists of three leased FPSOs: the BW Opal, BW Adolo, and BW Catcher. It also provides operations and maintenance for the Pioneer and owns the BW Hurra (formerly Nganhurra), which is available for redeployment.