Norwegian floater specialist BW Offshore has secured a limited notice to proceed by European supermajor Shell for early-stage engineering covering the supply of a production unit for the Gato do Mato pre-salt development offshore Brazil.

The notice is valued at up to $50 million and upon completion, Shell is expected to award a lease and operate contract to a consortium comprising BW Offshore and Italy’s Saipem.

The partners will be jointly responsible for the engineering, procurement, construction and installation of the Gato do Mato floating production, storage and offloading vessel, with first oil earmarked for 2026.