BW Offshore has received a three-month extension on a limited notice to proceed from UK supermajor Shell related to the supply of a floating production, storage and offloading vessel for the Gato do Mato pre-salt development offshore Brazil.

The Norwegian floater specialist and project partner Italy’s Saipem first won the $50 million notice in May, but Shell opted to extend the period to February 2023.

“Terms of the contract are in agreed form. Upon completion of the extension period, BW Offshore and Saipem have the option to be awarded the lease and operate contract, contingent on financing and the project reaching final investment decision,” BW said.