BW Energy completes acquisition of Petrobras oil, gas assets offshore Brazil
(WO) – BW Energy has completed the acquisition of the Golfinho and Camarupim Clusters from Petrobras and assumed ownership and operatorship of approximately 10,000 bbl 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.
The Golfinho Cluster is located at a water depth between 1,300 and 2,200 m 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 m, 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 monetize 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 MMboe of proven recoverable resources, predominantly oil, of which 19 MMboe developed and producing and 19 MMboe 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.
The transaction is financed through BW Energy’s existing liquidity and an oil pre-payment facility, with $12.2 million paid at closing, following an initial $3 million payment at signing in 2022. Further, the agreement includes up to $60 million in future contingent payments linked to oil price, well operations and further successful development of the acquired assets.