Norwegian FPSO operator BW Offshore has reached a settlement with Brazil’s Prio Comercializadora, previously known as Petro Rio O&G Exploração e Produção de Petróleo, over a dispute concerning a floating production, storage, and offloading (FPSO) vessel.
As disclosed by the Norwegian player, the arbitration was agreed to be fully and finally settled before London’s International Court of Arbitration before the issuance of a final award. Prosafe Production is listed as BW Offshore’s co-respondent in the case.
While the terms of the confidential settlement agreement remain unknown, BW Offshore expects to receive approximately $36 million as a result.
According to the Norwegian firm’s annual reports, Petro Rio Exploração e Produção de Petróleo filed a request for arbitration concerning charter and services agreements in September 2021. The case was related to FPSO Polvo , for which PetroRio sought $31 million for the alleged overpayment of hire and arbitration costs and fees.
In October 2021, BW Offshore responded with a counterclaim, requesting compensation primarily for unpaid invoices and demobilization costs amounting to approximately $30 million.
The FPSO Polvo, originally built for operation in Brazil’s Polvo field, completed 14 years of production before being demobilized in 2021. Its sale to BW Energy, initiated in 2022, was completed in May 2024 .
BW Energy plans to use the FPSO, now named BW Maromba , for the development of the Maromba field offshore Brazil. For this purpose, the unit was towed to China for refurbishment in late 2023. According to the company’s 3Q 2024 results from November 2024, it was at the COSCO yard in China awaiting upgrades.
The Maromba licence is located in the southern Campos Basin offshore Brazil, approximately 100 kilometers southeast of the city of Cabo Frio. BW Energy Maromba do Brasil holds a 100% operated ownership interest in the license. Magma Oil has a 5% back-in right in Maromba, which is expected to be executed once first oil is achieved.
As stated by BW Energy, the development is targeting low-risk barrels in an oil rich area with multiple producing assets. The concept is based on the re-use of an FPSO and a jack-up with drilling capacity and dry trees, providing what the firm says is an efficient development with short pay-back time.
The development concept consists of a dry tree wellhead platform tied to the FPSO. A final investment decision (FID) is targeted this year, followed by production start in 2027, with around 50,000 barrels per day expected initially.