Eight Years After Deadly Explosion Offshore Brazil, BW Offshore Finds Buyer for Laid-up FPSO

Oslo-listed FPSO provider BW Offshore has agreed to sell the laid-up FPSO BW Opportunity to an undisclosed third party for $125 million. 

BW Offshore said Friday that the sale was subject to conditions precedent and is expected to be completed by the end of the first quarter of 2023. 

In parallel, BW Offshore said it 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 a February 28 annual report, BW Offshore said that increased market activity was opening up potential re-deployment projects for BW Opportunity and that it was "in dialogue to redeploy the FPSO BW Opportunity, with several prospects being evaluated in an active FPSO market."

It at the time said that 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."

Explosion in Brazil

The BW Opportunity was previously known as Cidade de Sao Mateus FPSO. The FPSO was involved in an explosion in February 2015, in which nine workers were killed and 26 others injured, offshore 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.

According to a report by the Brazilian Navy after the incident, 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."

According to available information, the FPSO is currently laid up in Singapore.

FPSO Specs