BW Offshore agrees short-term extension for FPSO Abo as talks go on
- Business & Finance
Norway’s BW Offshore has signed an interim extension agreement for the Abo FPSO with a subsidiary of Eni, Nigerian Agip Exploration, until March 31, 2017.
BW said on Monday that the short-term extension was agreed to secure operational continuity while joint work is continuing to conclude the negotiations.
To remind, BW Offshore in January 2015 signed a two-year extension deal until 4Q 2016, with an additional seven-year extension option for the FPSO.
After the two-year firm contract expired at the end of 2016, the company entered into negotiations with Agip in January this year. The extension options, if agreed on, will see the FPSO continuing work until 2023.
Abo FPSO has a storage capacity of 930,000 barrels of oil and oil treatment capacity of up to 45,000 bopd, a water injection capacity of 30,000 bwpd and a gas compression capacity of 48,4 mmscfd.
The FPSO Abo has been working on the Abo field offshore Nigeria with Agip since the beginning of production in 2003. The field is located in the OML 125 license some 40 kilometers off the Nigerian coast on the western edge of the Niger Delta, at a water depth of 550 m to 1,100 m.
The license covers an area of 1,983 square kilometers with Agip Exploration as the operator with 85 percent interest and Oando as the partner with 15 percent interest. The field currently has four producing wells, water injection wells, and two gas injection wells.
Offshore Energy Today Staff