Houston-based Vaalco Energy has signed a binding agreement with World Carrier Offshore Services to provide and operate a floating storage and offloading (FSO) unit at Etame Marin field offshore Gabon for up to eight years, with additional option periods available upon the expiration of the current floating production, storage and offloading (FPSO) contract in September 2022.
The non-binding letter of intent with Omni Offshore Terminals, which Splash reported in April, expired without any mutually agreeable contract being reached.
World Carrier will provide and operate the 2001-built crude tanker Cap Diamant as an FSO. The bareboat contract and operating agreement will become effective upon approval from the Etame joint owners, which is expected by early September 2021.
According to Vaalco, the FSO solution should reduce storage and offloading costs by almost 50%, lower total operating costs at Etame by around 17% to 20% through 2030, and increase effective capacity for storage by over 50%.
Vaalco acquired a 27.8% working interest in Etame Marin from Sasol this year, taking its stake to close to 60% in the block, nearly doubling its total production and reserves.