The contract will be serviced by a newly-built FPSO unit to be constructed by Samsung Heavy Industries in South Korea.
The FPSO unit is scheduled to deliver during the first quarter of 2014, at which time it will begin operations under its charter contract with BG for a firm period of either six or ten years plus extension options for a total period of up to 20 years.
Under the deal, BG has until the end of 2012 to decide on the firm period of the charter contract.
The FPSO unit will have a maximum design production capacity of 63,000 barrels per day.
The Knarr field, previously known as Jordbaer, is located in the Tampen area in the northern North Sea.
The field is estimated to contain recoverable reserves of some 70 million barrels of oil equivalents, which could increase if drilling results from nearby prospects in the region prove to be successful.
BG is the operator of the Knarr field and its partners are Idemitsu Petroleum Norge, Wintershall Norge, and RWE Dea Norge.
