BW Energy has signed an agreement to acquire the FPSO Cidade de Vitoria from Saipem for a cash consideration of USD 73 million.
The transaction is subject to fulfilment or waiver of conditions precedents with an expected closing and takeover of the FPSO in the first quarter of 2023.
The transaction will accelerate BW Energy’s build-up of a local operating organisation in Brazil and increase stakeholder engagement ahead of the Maromba development.
“Establishing a solid working relationship with Brazilian authorities and other stakeholders is key to a successful Maromba development. Having two operating assets in Brazil will create several synergies and make us an attractive local employer,” said Carl K. Arnet, the CEO of BW Energy.
The FPSO Cidade de Vitoria is a flexible unit with 1.6 million barrels of storage capacity. The unit can produce more than 100k barrels per day of oil and has additional capacity for gas production and compression. It positions BW Energy to efficiently increase production from the Golfinho cluster with ample oil and gas handling capacity to accommodate the upside from planned future developments. The FPSO acquisition will enable BW Energy to reduce the whole field OPEX.
BW Energy will pay Saipem USD 73 million in fixed consideration for the FPSO of which USD 25 million is due at closing, USD 13 million due at FPSO takeover and USD 35 million paid in 18 monthly instalments following the takeover.
For further information, please contact:
Knut R. Sæthre
CFO BW Energy
+47 91 11 78 76
[email protected]
About BW Energy:
BW Energy is a growth E&P company with a differentiated strategy targeting proven offshore oil and gas reservoirs through low risk phased developments. The Company has access to existing FPSOs to reduce time to first oil and cashflow with lower investments than traditional offshore developments. The main assets are 73.5% of the producing Dussafu Marine Permit offshore Gabon and a 95% interest in the Maromba field in Brazil, both operated by the Company. Total net 2P+2C reserves were 240 million barrels at the start of 2022.
This information is considered inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange release was published by Regine Andersen, IT & Communication Support, 24 June 2022.