Operator of FPSO units BW Offshore has received a notice from oil and gas major Petrobras for a one-year extension of the contracts relating to the FPSO Cidade de São Mateus.

The company informed that it will continue its dialogue with the client towards finalising a firm plan for the floating production storage and offloading unit.

Cidade de São Mateus, which was converted from a very large crude carrier (VLCC) in 2007, remains in lay-up.

In February 2015, an explosion occurred on the FPSO unit, which was operated for Petrobras on the Camarupim and Camarupim Norte fields in Espirito Santo some 120 km off the coast of Brazil.

The incident took the lives of nine persons of the 74 workers who were on-board the unit at the time. Following the tragedy, production was stopped and the unit was shut down.

Image Courtesy: BW Offshore

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