The MoU is subject to the finalisation of a definitive contract for EPC works for BP’s Kaskida FPU project.
Seatrium has received a letter of intent (LOI) from BP Exploration & Production (BP) to undertake “certain early engineering work” subject to the finalization of a definitive engineering, procurement, construction and commissioning (EPC) contract for BP’s Kaskida floating production unit (FPU) project in the Gulf of Mexico.
The project is a greenfield development located approximately 250 miles southwest of New Orleans in the Keathley Canyon area of the Gulf of Mexico.
The Kaskida FPU consists of a single upper deck module supported by a four-column semi-submersible hull. It is supported by subsea production wells located in approximately 6,000 feet of water.
The contract award is subject to mutually agreed terms, management approval and BP’s final investment decision.
“We are delighted to receive BP’s letter of intent for the Kaskida development. This award reflects our expertise and track record in delivering complex FPUs. Over the years, Seatrium has established itself as a market leader in FPU EPC projects. 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 Letter of Intent is not expected to have a material impact on Seatrium’s net fixed assets (NTA) and earnings per share (EPS) for the fiscal year ending December 31, 2024.
Seatrium shares closed 1 cent lower, or 0.56%, at $1.78 on June 4.
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