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

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.

newsletter

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.

Posted 11 March 2019

© Copyright 2019 Seatrade Informa Markets. Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade Informa Markets.

Related Topics

Lee Hong Liang

Author Bio ▼

Asia Correspondent Lee Hong Liang has joined Seatrade as its Asia Correspondent. Based in Singapore, he will provide a significant boost to daily coverage of the Asian shipping markets, as well as bring with him an indepth, specialist knowledge of the bunkering markets. Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and the ability to write hard news and feature stories.

Sign up to get the latest Maritime News headlines emailed directly to your inbox

SUBSCRIBE