Additional time secured for BW Offshore FPSO off Nigeria

Italian-headquartered oil and gas giant Eni has handed out yet another short-term contract extension to BW Offshore for one of its floating, production, storage, and offloading (FPSO) vessels, which is working on a field located offshore Nigeria.

FPSO Abo; Source: BW Offshore

According to BW Offshore, it has signed a short-term extension for the FPSO Abo with Nigerian Agip Exploration, a subsidiary of Eni, enabling the FPSO to carry out operations on the Abo field until 14 August 2023. The previous contract extension expired on 31 July 2023. The company is engaged in divestment dialogues for this FPSO, which were previously expected to close in 1H 2023.

Located in the OML 125 license some 40 kilometres off the Nigerian coast on the western edge of the Niger Delta, at a water depth of 550 to 1,100 metres, the Abo field covers an area of 1,983 km² (490,010 acres). It contains light sweet crude oil, typically 39° to 41° API, and natural gas.

With three fields – Abo, Abo North and Okodo – the license encompasses eight producing wells, two water injectors and two gas injectors. These wells are tied back to the Abo FPSO. Agip is the operator with 85 per cent working interest, while Oando Energy Resources holds the remaining 15 per cent.

The Abo FPSO comes with a storage capacity of 930,000 barrels of oil, an oil treatment capacity of up to 45,000 bopd, a water injection capacity of 30,000 bopd, and a gas compression capacity of 48,4 mmscfd. This FPSO has been working on the Abo field with Eni’s Agip since the start of production in 2003.

BW Offshore is working on expanding the niche oil and gas segment by redeploying existing FPSOs and divesting non-core assets. The company has already sold multiple FPSOs, including Sendje BergeEspoir IvoirienBW AthenaBW OpportunityCidade de São Vicente, and BW Joko Tole. In addition, the FPSO operator expects the recycling of the FPSO Petróleo Nautipa late in 2023.