BW Offshore FPSO’s stay off Nigeria extended once again

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 carrying out operations on a field located offshore Nigeria.

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 31 July 2023. The previous contract extension expired on 30 June 2023.

Covering an area of 1,983 km² (490,010 acres), the Abo field is 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. This field 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. To this end, the company is engaged in divestment dialogues for this FPSO and the FPSO Sendje Berge. The firm aims to close these deals in 1H 2023.

The company has already sold multiple FPSOs, including Espoir Ivoirien, BW Athena, BW Opportunity, Cidade de São Vicente, and BW Joko Tole.