BW Offshore and Fred Olsen Production have signed a contract worth up to $300 million in revenue with Vaalco Energy for a five-year extension for the lease and operation of the FPSO Petróleo Nautipa.

BW and Fred Olsen each own 50% of the FPSO, currently working for Vaalco on the Etame field offshore West Africa’s Gabon. The firm period has been extended to Q3 2020 (from Q3 2015), with options for an additional two years.

The contract has a total revenue value of $300 million including options, up from $100 million under the previous contract.

The floating production vessel will undergo a life-extension upgrade with an estimated capex of $30 million.