2006-built FPSO changing hands as BW Offshore eyes redeployment opportunities

Norway’s BW Offshore is set on expanding its floating production, storage, and offloading (FPSO) fleet by embarking on the acquisition of a 19-year-old FPSO to leverage redeployment opportunities in the offshore oil and gas arena.

Thanks to its agreement to buy the FPSO Nganhurra, BW Offshore claims to have secured a high-quality production unit in a market where comparable opportunities are becoming increasingly scarce. The acquisition entails a limited upfront payment, with additional consideration contingent upon the unit’s redeployment before June 2027.

Marco Beenen, CEO of BW Offshore, commented: “The acquisition of the FPSO Nganhurra represents a strategic decision to capitalise on a compelling market opportunity. Given the limited availability of suitable FPSOs for redeployment, securing this unit places BW Offshore in a strong, competitive position.”

Considering the potential for FPSO redeployment opportunities over the next few years, the firm is convinced that having this asset in place enhances its ability to offer “timely and competitive” redeployment solutions. The 2006-built FPSO Nganhurra has a production capacity of 100,000 barrels per day and a storage capacity of 900,000 barrels.

The unit operated at Woodside’s Enfield oil field, approximately 38 kilometers north of the North West Cape in Western Australia, until 2018. Afterward, the FPSO was laid up in Malaysia. BW Offshore highlights that the vessel’s mooring system supports operation across varied offshore conditions, enhancing flexibility and reducing costs for future redeployment.

“The unit will have minimal lay-up costs and presents limited downside risk from recycling, ensuring prudent capital management while we assess redeployment options,” underlined the company, which recently handed over the operations and maintenance (O&M) of its FPSO in Gabon to BW Energy.