Fred. Olsen Production Inks Contract Extension for FPSO (Norway)

Fred. Olsen Production and BW Offshore have signed a contract with Vaalco Energy for a five year extension for the lease and operation of the FPSO Petróleo Nautipa.

The FPSO is owned 50% by Fred. Olsen Production and 50% by BW Offshore. The firm period has been extended to Q3 2020 (from Q3 2015), with options for additional two years.

This contract has a total revenue value of USD 300 million including options, up from USD 100 million under the previous contract.

The FPSO will undergo a life-extension upgrade with an estimated capex of USD 30 million and the figures for revenue and capex are listed on a 100% basis.

[mappress]

Source: fredolsen, July 2, 2012