FPSO at Sea

WFW advises Apache Energy Limited on $185m purchase of the FPSO Ningaloo Vision from BW Offshore

2 February 2012

The Singapore office of Watson, Farley & Williams LLP (“WFW”) is pleased to announce that it recently represented Apache Energy Limited (“Apache”) in relation to its acquisition of a floating production, storage and offloading (“FPSO”) facility located in the Van Gogh Field, offshore North West Australia. The Van Gogh Field is currently operated by joint venture partners Apache and INPEX Corporation.

The FPSO facility, named the Ningaloo Vision, can process 150,000 barrels of liquids per day and has a total storage capacity of 540,000 barrels of oil. From 2007 the facility was chartered to Apache by its owner-operators, Prosafe Production Services Pte Ltd (“Prosafe”). In 2010 the Ningaloo Vision was taken over by BW Offshore (“BWO”) as part of a merger with Prosafe.

The Ningaloo Vision has now been purchased by Apache on an “as is, where is” basis for US$185 million. Before final handover, the FPSO facility will continue to be operated by BWO for up to six months on a “cost-plus” basis.

WFW assisted with the acquisition by drafting and negotiating the sale and purchase agreement, O&M agreement and ancillary documentation. The WFW team is pleased to have facilitated Apache’s commercial objectives and it is hoped that the purchase will enable Apache to maximise its oil production in the Van Gogh Field.

The WFW team was led by Dan Thompson and supported by associates Dan Saunders and Meishuang Tay.