BW Offshore said Wednesday it had closed the transaction for the sale of the FPSO BW Opportunity for $125 million to an undisclosed third party.
The Oslo-listed FPSO provider last Friday said it had agreed to sell the laid-up FPSO to an unnamed buyer.
The company said last Friday it was also exploring the commercial principles for the provision of engineering, procurement, construction, and commissioning, and operations and maintenance) services for a five-year transitional period with the undisclosed buyer.
In a February 28 annual report, BW Offshore said that increased market activity was opening up potential redeployment projects for BW Opportunity. It also said it was “in dialogue to redeploy the FPSO BW Opportunity, with several prospects being evaluated in an active FPSO market.”
It at the time said that the benefits of reusing an existing asset were short lead time to cash flow, as well as less capital required compared to a new build combined with “a reduced environmental footprint during development as we reuse existing energy infrastructure.”
Explosion in Brazil
The BW Opportunity was previously known as Cidade de Sao Mateus FPSO. The FPSO was involved in an explosion in February 2015, in which nine workers were killed and 26 others injured, offshore Brazil.
There were 74 people aboard the FPSO at the time of the incident which happened after an explosion in the pump room, which caused significant damage to the FPSO itself, too. The unit at the time operated at Petrobras’ Camarupim and Camarupim Norte fields in Espirito Santo 120 km from the coast.
According to a report by the Brazilian Navy after the incident, the explosion caused severe structural damage at the aft section, it affected living quarters, engine room, pump room, and structural fittings and equipment located in those quarters.
In the 2022 annual report, BW Offshore CEO said: “We have […] completed the BW Opportunity repairs, and she is now actively marketed for potential redeployment projects.”
The FPSO has been laid up in Singapore since the termination of the contract with Petrobras in 2020.
Delivered in 2007, the FPSO has oil processing capacity of 35,000 bbl/d, gas handling capacity of 350 mmscfd and water injection capacity of 31,500 bbl/d. The spread-moored FPSO has a storage Capacity 900,000 bbl.