BW Offshore: Acquisition of Maromba field offshore Brazil
08 Marzo 2019 - 3:00PM
BW Offshore has entered into an agreement to
acquire 70% of the Maromba field offshore Brazil for a total
acquisition cost of USD 90 million from Petrobras. Closing of the
acquisition is subject to fulfilment or waiver of conditions
precedents, including approval by The Brazilian National Agency of
Petroleum, Natural Gas and Biofuels (ANP) to close the transaction
and deem BW Offshore an approved operator in Brazil.
Maromba is located off the
Brazilian coast in the Campos Basin in approximately 160 metres of
water depth. Internal estimates show potential recoverable
resources of 100-150 million barrels of low-sulphur 16 API oil in
Maastrichtian sandstone reservoirs. Eight of nine exploration and
appraisal wells drilled to date have been successful and have found
oil in multiple reservoirs. 4 out of the 8 successful wells have
defined and delineated the Maastrichtian sand targets. In addition
to the Maastrichtian targets, prior exploration data yields more
than 1 billion barrels of oil in place upside potential. This
upside will be later defined by further appraisal work post first
oil, similar to recent appraisal campaigns at the Dussafu license
offshore Gabon.
The Maromba field is located close
to the Peregrino, Papa Terra and Polvo oil fields where BW Offshore
currently has or has had operations. BW Offshore intends to deploy
one of its existing FPSOs to the field as part of a phased
development to de-risk the project like at the Dussafu
development.
"Maromba meets many of the
criteria our E&P strategy is founded on; proven resources, high
upside potential, located in a country where we currently operate,
phased development and the use of one of our own FPSOs", said CEO
Carl K. Arnet of BW Offshore. "We will pay approximately USD 1 per
barrel of recoverable resources in an area we know well, and we are
currently evaluating several development options within our phased
development strategy that range from USD 3 to 7 of capital cost per
recoverable barrel plus FPSO lease. Maromba has the potential to
create significant value for the shareholders of BW Offshore," Carl
K. Arnet added.
The acquisition price will be paid
over three milestones as the development progresses towards first
oil. The first milestone of USD 20 million is due on receipt of ANP
approval as operator and formal sanction of the transaction,
expected in the second half of 2019. The second milestone of USD 20
million is due at start of drilling activities and the third
part-payment, representing the remaining USD 50 million, is due at
first oil or 3 years after the start of drilling activities,
whichever comes first.
The acquisition of the remaining
30% field interest is pending board approval by Chevron.
For further information, please
contact:
Knut R. Sæthre, CFO, +47 911 17 876
About BW Offshore:
BW Offshore is a leading provider of floating production services
to the oil and gas industry. The company also participates in
developing proven offshore hydrocarbon reservoirs. BW Offshore is
represented in all major oil and gas regions world-wide with a
fleet of 15 owned FPSOs. The company has more than 30 years of
production track record, having executed 40 FPSO and FSO projects.
BW Offshore is listed on the Oslo Stock Exchange.
This information is subject to the disclosure
requirements pursuant to section 5 -12 of the Norwegian Securities
Trading Act.
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: BW Offshore via Globenewswire
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