BW Offshore has received notice from Petrobras exercising a one-year extension of the contracts relating to the FPSO Cidade de São Mateus.
BW Offshore said it would continue its dialogue with Petrobras towards finalising a firm plan for the FPSO, which remains in lay-up with no firm date set for the unit to return to the field.
In 2015, the FPSO Cidade de São Mateus suffered from an explosion onboard off Brazil, which led to the death of nine people and nearly 30 injured.
The 1989-built FPSO Cidade de São Mateus was converted from a VLCC to FPSO in 2007.