BW Offshore has announced that it signed an agreement with its insurers for an early repair cost settlement for the FPSO Cidade de São Mateus.
The agreed settlement amount, which is about $250m, is expected to be received during the first quarter of 2017.
In February 2015, BW Offshore-owned FPSO Cidade de Sao Mateus suffered an explosion onboard off Brazil, which lead to the death of nine people and nearly 30 injured.
Investigations by the FPSO charterer Petrobras revealed that the explosion occurred following a natural gas leak aboard led by a series of technical failures and poor decision making. However, Petrobras denied any prior knowledge of the failings laid out in the investigation report.
According to BW Offshore, the FPSO Cidade de São Mateus is currently in lay-up with no firm date set for the unit will return to the field.