BW Offshore Sells Laid Up FPSO for $50 Million

Credit: BW Offshore (file photo)
Credit: BW Offshore (file photo)

Oslo-listed FPSO leasing company BW Offshore has agreed to sell its laid-up FPSO Polvo to BW Energy for $50 million. BW Energy will redeploy the FPSO in Brazil.

The transaction is expected to be concluded by July 24, 2023, at the latest.

If the transaction is completed before the said date, BW Energy will pay $30 million upon the vessel transfer date, with the remaining $20 million provided as a seller’s credit by BW Offshore until settlement on July 24, 2023, at the latest.

"An independent third-party valuation of the FPSO concluded that the sales price is within a fair market value range," BW Offshore said.

FPSO Polvo vessel recently ended its charter on the Polvo field in Brazil and is currently in lay-up in Dubai. 

BW Energy plans to redeploy the FPSO on the Maromba field offshore Brazil. 

"The decision to divest the FPSO, instead of entering a traditional lease and operate contract with BW Energy, is due to regulatory challenges under Brazilian related- and associated-party legislation," BW Offshore said.

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