Rising global demand for FPSOs has prompted contractor BW Offshore to acquire the FPSO Nganhurra, one of very few capable floating production storage and offloading vessels not working. The contractor described the unit as a “high-quality production unit in a market where comparable opportunities are becoming increasingly scarce.”
According to BW Offshore, the transaction includes a limited upfront payment, with additional consideration contingent upon the successful redeployment of the unit before June 2027. Terms of the acquisition were not disclosed.
FPSO Nganhurra is a purpose-built FPSO, constructed in 2006, with a production capacity of 100,000 B/D and a storage capacity of 900,000 bbl. It operated offshore Western Australia until 2018 and was later laid up in Malaysia. The unit’s mooring system is designed to operate under a wide range of offshore conditions, reducing costs associated with future redeployment.
“The acquisition of the FPSO Nganhurra represents a strategic decision to capitalize on a compelling market opportunity,” said Marco Beenen, the CEO of BW Offshore. “Given the limited availability of suitable FPSOs for redeployment, securing this unit places BW Offshore in a strong, competitive position.”
The FPSO produced oil from Woodside Energy’s Enfield field for 13 years prior to its end-of-field life in late 2018. The vessel was built in the Samsung shipyards on Geoje Island, South Korea, in 2006. Its build and commissioning took 19 months, setting an industry record at the time for a complete FPSO project. First oil from Enfield flowed on 28 June 2006. In total, it produced more than 80 million bbl. Mitsui was a minority owner of the project.
Malaysian FPSO operator Yinson held the exclusive purchase options rights for FPSO Nganhurra until 30 June 2023. The contractor had entered an exclusive agreement with operator BP to reserve the FPSO for use on the supermajor’s Palas, Astraea, and Juno oil fields project offshore Angola. Final investment decision on the project was pushed back, and Yinson never exercised its purchase option.
