Petrobras Contract for a BW Offshore FPSO Expired Today

Referring to Petrobras, BW Offshore said on Monday (30) that the contracts for the FPSO reached their final terms on Sunday, March 29. The FPSO Cidade de São Mateus operated in the Camarupim field between 2009 and 2015. In February 2015, the FPSO was involved in a gas explosion with fatal consequences.

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At the time of the accident, the unit was operated by Petrobras and BW Offshore in the Camarupim and Camarupim Norte fields, in Espírito Santo, approximately 120 km off the coast in southeastern Brazil. Nine of the 74 people on board lost their lives in the accident.

Due to delays in approval in Brazil, the process of towing the damaged FPSO from the offshore field to the coast took more than a year. The FPSO has been in lay-up in Singapore since then.

BW signed a contract with its insurers, effective December 22, 2016, for an early settlement of US $ 250 million in repair costs during January 2017. The amount was received in 2017.

In March 2018, Petrobras exercised a one-year extension of the contract for the FPSO Cidade de São Mateus, with both companies still working to finalize a firm plan for the FPSO while the unit remained in lay-up. Dialogue with Petrobras continued in 2019.

In Monday’s update, BW did not reveal whether any firm plan for the FPSO was agreed upon with Petrobras.