Norway's BW Offshore reported Monday that Petrobras America Inc., a unit of Brazil's national oil company Petroleo Brasileiro (Petrobras), has exercised an option to extend the fixed term of the lease contract for FPSO BW Pioneer for three years from the first quarter of 2017 to the first quarter of 2020.

Prior to the commencement of the contract extension, BW Offshore will replace parts of the subsea mooring system for the floating production storage and offloading (FPSO) vessel in the second quarter of this year.

During the replacement, expected to take approximately two months to complete, the FPSO BW Pioneer will be disconnected. BW Offshore said the the replacement cost for the parts will be partly covered by insurance. The FPSO operates at the Cascade & Chinook field in the U.S. Gulf of Mexico.

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