The transaction provides the Norwegian company with ownership and operatorship of assets with around 10,000 barrels of daily oil production, along with several proven low-risk in-field development opportunities with potential long-term upside
Norway-based BW Energy has completed its previously announced acquisition of the Golfinho and Camarupim Clusters from Brazil’s state-owned petroleum company Petrobras.
BW Energy acquires offshore assets from Petrobras. (Credit: Ben Wicks on Unsplash)
In June last year, BW Energy and Petrobras signed binding contracts for the maritime concessions located in deep waters of the Espírito Santo Basin, offshore Brazil.
With the completion of the transaction, the Norwegian company assumes ownership and operatorship of assets with around 10,000 barrels of daily oil production.
In addition, the company obtained several proven low-risk in-field development opportunities with short lead times and potential long-term upside from proven gas accumulations.
Petrobras received $12.2m at closing, following an initial $3m payment at signing.
The Brazilian oil and gas company will also receive up to $60m in future, contingent on the oil prices, well operations and development of the acquired assets.
BW Energy financed the transaction through available cash and an oil pre-payment facility.
The Norwegian company now owns 100% working interest in the Golfinho and Camarupim Clusters and 65% interest in the BM-ES-23 block.
BW Energy CEO Carl K Arnet said: “We are pleased to complete the transaction to become the owner of material production and cashflow in Brazil and to diversify our production and resource base.
“We have a strong local organisation in place ready to assume operatorship and capture a significant potential for value creation through already identified phased development opportunities and near-field exploration.”
In June last year, BW Energy also signed a Memorandum of Agreement (MOA) with Italian oilfield services company Saipem for the sale of the FPSO Cidade de Vitória.
As per the MOA, BW Energy would pay Saipem a $73m consideration, which includes $38m at the closing of the Golfinho transaction and $35m in 18 monthly instalments after the closing.
With the Golfinho transaction being completed, BW Energy and Saipem are working to complete the sale and initial payments for the FPSO Cidade de Vitória.
The delivery of the FPSO Cidade de Vitória is expected within the fourth quarter of this year.