Two Week Contract Extension for FPSO in Nigeria

Credit: BW Offshore
Credit: BW Offshore

FPSO leasing company BW Offshore has signed a short-term extension for its Abo FPSO.

The extension was signed with Nigerian Agip Exploration Ltd, a subsidiary of the Italian oil firm Eni, and runs until August 14, 2023.

BW Offshore has been in talks to divest the FPSO, which is operating at the Abo field offshore Nigeria, and is seen as non-core to its FPSO fleet. This extension is the latest in a series of short-term extensions announced for the Abo FPSO recently.

The ABO FPSO started producing in April 2003. Keppel converted it from the 1976-built single-hull Suezmax tanker Grey Warrior, which was previously owned by Prosafe.

WER database shows that the FPSO has an oil production capacity of 44,000 b/d, a gas handling capacity of 44 mmcf/d, and can store 930,000 bbls. The vessel is spread-moored in a water depth of 500 meters.  

The Abo field is located in Block OML 125, offshore Nigeria. In 2022, production from the block was derived mainly from the Abo field, which yielded approximately 14 kboe/d net to Eni.

In August 2022, Eni finalized a twenty-year extension of the PSC agreement for the OML 125 block. In addition, Eni signed an agreement with the State company NNPC to recover past receivables related to the OML 125 development and production activities, starting in 2023.

BW Offshore has been working to offload the non-core FPSO fleet, including the Abo FPSO.

In July, the company sold FPSO Sendje Berge in Nigeria to "a local FPSO owner and operator" for $15 million. Before that, BW Offshore sold the Espoir Ivoirien, BW Athena, BW Opportunity.

BW Offshore's core FPSO projects include the Barossa FPSO being built for Santos in Australia, BW Adolo, which produces oil for BW Energy in Gabon, BW Catcher, which is on a contract with Harbour Energy in the UK North Sea, and BW Pioneer, which is on a contract with Murphy Oil Corporation in the U.S. Gulf of Mexico.

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