Petrobras extends contract for BW FPSO, but unit stays in lay-up

Brazilian oil company Petrobras has exercised a one-year extension of the contract for the BW Offshore-owned FPSO Cidade de São Mateus. 

BW Offshore said on Tuesday it will continue its dialogue with the client towards finalizing a firm plan for the FPSO while the unit remains in lay-up.

To remind, the FPSO Cidade de São Mateus was in February 2015 involved in a gas explosion with fatal consequences while operating offshore Brazil.

At the time of the accident, the unit was operated for Petrobras by BW Offshore on the Camarupim and Camarupim Norte fields in Espirito Santo littoral approximately 120 km from the coast in south-eastern Brazil. Nine of the 74 persons on-board lost their lives in the accident.

Following the fatal incident, it took over a year to tow the damanged FPSO from the field to shore and it has been in lay-up ever since.

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

Offshore Energy Today Staff

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