BW Offshore wraps up sale of FPSO

Norway’s FPSO operator BW Offshore has completed the sale of a floating, production, storage, and offloading (FPSO) vessel to a buyer, whose name was not revealed.

BW Offshore reported the signing of an agreement for the sale of the FPSO BW Opportunity on 10 March 2023. At the time, the firm explained it was exploring the commercial principles for the provision of engineering, procurement, construction and commissioning (EPCC) and operations and maintenance (O&M) services for a five-year transitional period with the buyer.

In an update on Wednesday, 15 March 2023, the company confirmed that it had closed the transaction for the sale of the FPSO to an undisclosed buyer for a total consideration of $125 million. The FPSO BW Opportunity was converted in 2007. This vessel has an oil processing capacity of 35,000 bbl/d, a gas handling capacity of 350 mmscfd, a water injection capacity of 31,500 bbl/d, and a storage capacity of 900,000 bbl.

Currently, BW Offshore is focused on expanding the niche oil and gas segment by redeploying existing FPSOs and divesting non-core assets, as older units present an unbalanced risk/reward. To this end, the firm is engaged in divestment dialogues for FPSOs: BW Athena, Abo, Espoir Ivoirien and Sendje Berge with the aim of closing these deals in 1H 2023.

Moreover, the FPSO operator expects the recycling of the FPSO Petróleo Nautipa late in 2023 and the conclusion of the sale of the FPSO Polvo in 2Q 2023 with $50 million paid to the company.

As part of its divestment strategy, BW Offshore sold several vessels last year, including the FPSO Cidade de São Vicente and the FPSO BW Joko Tole.