Belgian tanker giant Euronav is selling a very large crude carrier (VLCC) for conversion into a floating production storage and offloading (FPSO) vessel.
Recently, Euronav stated in its quarterly earnings statement that it has entered into an agreement with a subsidiary of Total Energies to sell the 299,999 dwt VLCC “Alsace”, which was built by Samsung Heavy Industries in 2012. The vessel, which is estimated to be worth about $72.5 million, will be withdrawn from Euronav’s fleet in the first quarter of 2025 and will bring a profit of $27.5 million.
Earlier this year, Euronav sold and delivered three VLCCs, the 2008-built Nectar and Noble, and the 2009-built Newton, and brought in a profit of $79 million in the second quarter.
The Alsace will be converted to an FPSO when the deal with the Total Energies’ subsidiary is finalized, but no further details on the FPSO’s operating area have been disclosed.
Total Energies and its partners Petronas and Sonangol made the final investment decision for the Kaminho deepwater project (formerly Cameia-Golfinho) in Block 20/11 in Angolan waters in May of this year. The project will deploy FPSOs converted from VLCCs.
On the same day as the final investment decision was reached (21 May), Italian offshore giant Saipem announced that it had signed an offshore contract with Total Energies E&P Angola, a subsidiary of Total Energies, for the Kaminho project, which involves engineering, procurement, construction, transportation and commissioning of the Kaminho FPSO. Meanwhile, Saipem has awarded this VLCC conversion contract to China Merchants Heavy Industry (CMHI), citing Upstream last month.
The Kaminho project, which is the first major deepwater development in the Kwanza Basin, will develop the Cameia and Golfinho fields 100 kilometers off the Angolan coast in water depths of 1,700 meters, with a total investment of $6 billion, and is expected to come on stream in 2028.
The project will be equipped with an FPSO converted from a VLCC, with a crude oil handling capacity of around 70,000 barrels per day, which will be connected to subsea wells and pipeline networks, and will be equipped with a combined cycle gas turbine for power generation.