BW Offshore to sell laid-up FPSO

BW Offshore has entered into an agreement for the sale of the floating production storage and offloading unit FPSO Polvo to BW Energy for a total consideration of US$50 million.

The sale will be completed no later than July 24, 2023. BW Energy has the option to complete the transaction before that date.

The FPSO 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.

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