Completes Golfinho acquisition and becomes operator offshore Brazil
BW Energy has today completed the acquisition of the Golfinho and Camarupim Clusters from Petrobras and assumed ownership and operatorship of approximately 10,000 barrels of daily oil production, several proven low risk in-field development opportunities with short lead times and substantial potential long-term upside from proven gas accumulations.
After completion, BW Energy holds 100% working interest (WI) in the Golfinho and Camarupim Clusters and 65% WI in the BM-ES-23 block. The closing of the transaction follows a period of stable oil production after the restart of the FPSO Cidade de Vitória following repairs and upgrades.
"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, "said Carl K. Arnet, the CEO of BW Energy.
The transaction is financed through BW Energy's existing liquidity and an oil pre-payment facility, with USD 12.2 million paid at closing following an initial USD 3 million payment at signing in 2022. Further, the agreement includes up to USD 60 million in future contingent payments linked to oil price, well operations and further successful development of the acquired assets.
The Golfinho Cluster is located at a water depth between 1,300 and 2,200 meters in the Espírito Santo Basin. Adjacent is the BM-ES-23 exploration block which holds the Brigadeiro gas and condensate discovery. The Camarupim Cluster is also adjacent and located in water depths between 100 and 1,050 meters, comprising the non-producing gas fields of Camarupim and Camarupim Norte.
In addition to ongoing oil production revenues and previously identified infill drilling opportunities and oil upside developments, this transaction presents a value-creative opportunity to monetise existing and future gas resources. These resources will be brought to shore and sold in the already established Brazilian gas market for which the FPSO Cidade de Vitória is connected. This connection is via a gas export line that BW Energy will acquire and control as part of the transaction.
The Company's internal estimate is 38 million boe of proven recoverable resources, predominantly oil, of which 19 million boe developed and producing and 19 million boe undeveloped, defined infill opportunities. BW Energy has identified a further 0.7 Tcf of recoverable gas accumulations for potential future development.
The acquisition of the FPSO from Saipem is expected to be completed in the fourth quarter when the current short-term lease and operate contract for the FPSO expires.
For further information, please contact:
Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76 ir@bwenergy.no
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 production facilities 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, a 95% interest in the Maromba field in Brazil and a 95% interest in the Kudu field in Namibia, all operated by BW Energy. Total net 2P+2C reserves and resources were 428 million barrels of oil equivalents at the start of 2023.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
