Red tape forces BW Offshore to sell veteran FPSO to sister firm

Singapore’s BW Offshore will bank $50m from selling a veteran floating production storage and offloading (FPSO) unit to sister operation BW Energy.

The 90,000-bpd FPSO Polvo (built 1981) is needed to develop the new Maromba field off Brazil.

Oslo-listed BW Offshore said red tape in Brazil forced the sale, which will be completed no later than 24 July, 2023.

If the transaction is finalised earlier than that, BW Energy will pay $30m on the transfer date, with the remaining $20m provided as a seller's credit by BW Offshore.