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FPSO sold year after explosion

BW Offshore has agreed to sell the laid-up FPSO 'BW Opportunity' to an undisclosed third party for $125 million. BW Offshore said on March 10, 2023, that the sale was subject to conditions precedent and was expected to be completed by the end of the first quarter of 2023. In parallel, BW Offshore was exploring the commercial principles for the provision of engineering, procurement, construction, and commissioning, and operations and maintenance) services for a five-year transitional period with the buyer. In its annual report on Feb 28, BW Offshore said that increased market activity was opening up potential redeployment projects for the 'BW Opportunity' and that it was "in dialogue to redeploy the FPSO with several prospects being evaluated in an active FPSO market. The benefits of reusing an existing asset were short lead time to cash flow, as well as less capital required compared to a newbuild combined with "a reduced environmental footprint during development as we reuse existing energy infrastructure." The 'BW Opportunity' was previously known as 'Cidade de Sao Mateus' and involved in an explosion in February 2015, in which nine workers were killed and 26 others injured off the coast of Brazil. There were 74 people aboard the FPSO at the time of the incident which happened after an explosion in the pump room, which caused significant damage to the FPSO itself, too. The unit at the time operated at Petrobras' Camarupim and Camarupim Norte fields in Espirito Santo 120 km from the coast. The explosion caused severe structural damage at the aft section, it affected living quarters, engine room, pump room, and structural fittings and equipment located in those quarters. In the 2022 annual report, BW Offshore CEO said: "We have [...] completed the BW Opportunity repairs, and she is now actively marketed for potential redeployment projects." The FPSO is currently laid up in Singapore.

Dialogue to finalize plan for FPSO continued

The Brazilian oil company Petrobras has exercised a one-year extension of the contract for the "Cidade de Sao Mateus". BW Offshore said on March 14, 2018, it would continue its dialogue with the client towards finalizing a firm plan for the FPSO while the unit remained in lay-up at Singapore. The FPSO was in February 2015 involved in a gas explosion with fatal consequences while operating offshore Brazil. At the time of the accident, the unit was operated for Petrobras by BW Offshore on the Camarupim and Camarupim Norte fields in Espirito Santo littoral approximately 120 km from the coast in south-eastern Brazil. Nine of the 74 persons on-board lost their lives in the accident. Following the fatal incident, it took over a year to tow the damanged FPSO from the field to shore and it has been in lay-up ever since. BW signed an agreement with its insurers, with effective date Dec 22, 2016, for an early repair cost settlement of $250 million during January 2017. The amount was received in 2017.

BW Offshore a step closer to recovery

BW Offshore got a step closer to recovering the "Cidade de São Mateus" to shore for repairs more than a year after it was damaged in a fire. The fire, on Feb 11, 2015, on the Camarupim and Camarupim Norte fields in Espirito Santo littoral, about 120km from the coast in south-eastern Brazil saw nine of the 74 crew die and 26 require medical attention. The full extent of the damage is unlikely to be revealed until the vessel is towed to a yard, which will happen once riser and mooring disconnect work, which started in December 2015, is complete. Factors that led to the blast were non-compliance with operational procedures for fluid-pumping operations, the installation of a pipe rack without the correct technical specifications and registered incidents of non-compliance or alterations in security procedures. However, a detailed report has yet to be released.