BW Offshore to recycle FPSO Petróleo Nautipa

April 12, 2024
The unit was in operation at the Etame Field offshore Gabon for Vaalco Energy until the contract was completed in 2022.

Offshore staff

OSLO, NorwayBW Offshore has signed an agreement to recycle FPSO Petróleo Nautipa in compliance with the Hong Kong International Convention at Baijnath Melaram ship recycling facility in India.

The facility is certified to ISO standards and has been issued with a statement of compliance by the ship classification society Class NK in accordance with IMO Resolution MEPC.210(63) and the Hong Kong International Convention for the safe and environmentally sound recycling of ships.

BW Offshore intends to its personnel continuously at the site during the recycling period, supplemented by additional competent personnel from a third party, to ensure HSE regulations are followed. A ship recycling plan will be prepared and provided by the facility in compliance with the above regulations. 

The sale will free up about $9 million of liquidity, according to BW.

Since its conversion to an FPSO in 2002, the unit was in operation at the Etame Field offshore Gabon for Vaalco Energy until the contract was completed in 2022 and the unit was demobilized. Over the course of 20 years, the contract has been extended multiple times, from a contract that was initially two years firm plus three years of options.

Late last year, VAALCO Energy was reviewing locations for its next planned drilling campaign around the Etame Field offshore Gabon. Production performance in the period to Sept. 30 was strong, supported by improved operational uptime. The newly installed FSO has reduced opex costs at Etame. However, marine costs had risen due to inflation arising from supply vessel rates, transportation and contractors, along with higher diesel costs with the feed gas line being temporarily suspended due to a leak. This was fixed in October, and the FSO is using gas rather than diesel.



Courtesy VAALCO's "Q3 2023 Supplemental Information" Presentation
(Courtesy BW Offshore)
The FPSO Petróleo Nautipa.
(Courtesy BW Offshore)
Keppel Shipyard converted a 132,500-dwt tanker into the FPSO Petróleo Nautipa in 2002.