BW Offshore Agrees to Sell Abo FPSO for $20 Million to Nigerian Buyer

After several short-term charter extensions, the Norwegian FPSO leasing firm BW Offshore has closed the transaction for the sale of the Abo FPSO.

BW Offshore will sell the FPSO to STAC Marine Offshore Limited, a member of the Nigerian Transport Group (STAC) for $20 million. The FPSO has been operating for Eni's Agip in Nigeria for years.

"As part of the transaction, BW Offshore has entered into a bareboat charter with STAC to allow for uninterrupted operations for the client during a transition period of maximum two months. Upon expiry of the bareboat charter, STAC will assume responsibility for operations of the unit," BW Offshore said.

"Originally recognized as the "Gray Warrior", a Suezmax tanker constructed in 1976, the vessel underwent conversion at Keppel Shipyard before beginning its operations in April 2003. Abo FPSO has now reached a commendable milestone, having completed two decades of service on the Abo field. This achievement underscores its enduring contribution to the oil and gas industry in Nigeria," BW Offshore said.

The Abo field, where the FPSO has been deployed for two decades, 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.

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.  

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.