The Norwegian FPSO leasing firm BW Offshore says it has closed a transaction for the sale of the Abo FPSO to a Nigerian company.
BW Offshore will sell the Floating Production Storage and Offloading vessel to STAC Marine Offshore Limited, a member of the Nigerian Transport Group (STAC) for $20 million. The vessel is used for loading and storing crude oil.
The Abo FPSO has been operating for Eni’s Agip in Nigeria for years. The sale comes after several short-term charter extensions.
“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 in statement.
“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.”
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The Abo field, where the FPSO has been deployed for two decades, is located in Block OML 125, offshore Nigeria. It is the main source of production from the block, yielding approximately 14 kboe/d net to Eni in 2022.
The Abo 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. It is spread-moored in a water depth of 500 meters.
BW Offshore has been working to sell off its non-core FPSO fleet, including the Abo FPSO. In July 2023, the company sold FPSO Sendje Berge in Nigeria to a “local FPSO owner and operator” for $15 million. BW Offshore has also sold the Espoir Ivoirien, BW Athena, and BW Opportunity FPSOs in recent years.
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