FPSO Contract Extension Garners $40 Million

Tinworth Pte has entered into an agreement with Vaalco, Gabon to extend the contract for FPSO Petroleo Nautipa.

The FPSO operates at the Etame field offshore Gabon, West Africa. Through this agreement the current contract has been extended four years -- from September 2011 until September 2015 -- with options for more time.

As part of the agreement, the water treatment capacity on FPSO Petroleo Nautipa will be increased at the expense of the Etame partners. Also, the field operator will be entitled to increase oil production beyond the current contractual capacity of the FPSO against the introduction of a new tariff element in the compensation structure.

The Etame partners have an option to terminate the contract if dry-docking of Petroleo Nautipa is required in 2012. Total EBITDA-contribution from the tariff element in the compensation structure and the additional four years to 2015 is estimated to U.S. $40 million.