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BW Offshore earmarks $90m to acquire stake in Brazil offshore field

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BW Offshore has sealed an agreement to acquire 70% of Brazil’s Maromba offshore field for a price of $90m from Petrobras.

BW Offshore said it intends to deploy one of its existing FPSOs to the field as part of a phased development to de-risk the project.

“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 Carl K. Arnet, ceo of BW Offshore.

“We will pay approximately $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 $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,” Arnet added.

The Maromba field is located close to the Peregrino, Papa Terra and Polvo oil fields where BW Offshore currently has or has had operations.

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The $90m acquisition price will be paid over three milestones as the development progresses towards first oil.

The remaining 30% field interest is pending board approval by Chevron.

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.

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