BW Offshore secures time to hash out sale talks with new FPSO extension deal off Ivory Coast

Norway’s FPSO operator BW Offshore has secured a short-term contract extension for one of its floating, production, storage and offloading (FPSO) vessels, which is working at a field located offshore the Ivory Coast.

BW Offshore disclosed over the weekend that it had signed a short-term extension for the lease and operation of the FPSO Espoir Ivoirien to discuss a potential purchase of the FPSO by the client. As a result, the firm period has been extended until 9 June 2023.

This FPSO, which works on the CNR International-operated Espoir field off the Ivory Coast, is connected to the towers by flowlines and has an oil production capacity of 45,000 bbl/d. The production at the field started in 2002 while the oil produced from the Espoir East and West reservoir is processed, stored, and offloaded from the FPSO located between the two wellhead towers.

The fixed contract period with CNR International was set to expire in 2022, however, the deal also contains extension options until 2036. The previous extension was signed in April 2023.

As BW Offshore is focused on expanding the niche oil and gas segment by redeploying existing FPSOs and divesting non-core assets, the company recently inked a short-term extension with Eni for another FPSO, which is carrying out operations on a field located offshore Nigeria.

The Norwegian FPSO operator also completed the sale of an FPSO, as part of its strategy to transition to floating energy infrastructure investments. In addition, the firm is engaged in divestment dialogues for three FPSOs – Abo, Espoir Ivoirien and Sendje Berge – in a bid to close these deals in 1H 2023.

Aside from this, the company expects the recycling of the FPSO Petróleo Nautipa late in 2023 and the conclusion of the sale of the FPSO Polvo in 2Q 2023.