Seatrium has been awarded a letter of intent (LOI) by BP Exploration & Production (BP) to conduct “certain early engineering works”. This is pending the finalisation of a definitive contract for engineering, procurement, construction and commissioning (EPC) work for BP’s Kaskida floating production unit (FPU) project in the US Gulf of Mexico.
The project is a greenfield development that’s located some 250 miles southwest of New Orleans in the Keathley Canyon area of the Gulf of Mexico.
The Kaskida FPU comprises a single topside module supported by a four-column semi-submersible hull. It is supported by subsea production wells located in a water depth of some 6,000 feet.
The contract award is subject to mutually agreed terms and conditions, approval from management, as well as the final investment decision by BP.
“We are pleased to secure the Letter of Intent with BP for the Kaskida development. This award reflects our expertise and successful track record of delivering complex FPUs. Over the years, Seatrium has established itself as the market leader in EPC projects for FPUs. We look forward to the opportunity to contribute to the success of the Kaskida project,” says William Gu, executive vice president, oil & gas (international), Seatrium.
The LOI is not expected to materially impact Seatrium’s net tangible assets (NTA) and earnings per share (EPS) for the FY2024 ending Dec 31.
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Shares in Seatrium closed 1 cent lower or 0.56% down at $1.78 on June 4.
