BW Offshore has received approval from Brazilian oil regulator ANP (The Brazilian National Agency of Petroleum, Natural Gas and Biofuels) for the purchase of the Maromba oilfield, from Chevron and Petrobras.
The deal extends Norwegian company BW's operations in Brazil, where it already has two floating production, storage and offloading (FPSO) units.
The total purchase price for the oilfield, in the Campos Basin off the Brazilian coast, is US$115 million, payable in three installments.
Marco Beenen, CEO of BW Offshore said: “We are proud to announce that our subsidiary BW Energy has been approved by ANP as operator and has received governmental go ahead to acquire the Maromba license. This again proves the viability of the BWO business model for BW Energy and our continued success in developing proven reserves in the current oil price environment.”
The total acquisition price will be paid over three milestones as the development progresses towards first oil. Regulatory clearance will lead to the first milestone payment of $30 million. The second milestone is due at start of drilling activities and the third milestone is due at first oil or three years after the start of drilling activities, whichever comes first.
Carl K. Arnet, CEO of BW Energy added: “Maromba represents further proof of our upstream business model. Our Dussafu development is progressing according to our plans and is showing very good production of more than 12.000 bbls/d and no water. Our effort will now be directed to shortly present a plan for development to the Brazilian authorities and start the development of this very attractive license. Maromba is expected to significantly increase our production from 2022 onwards and is a very important element in our growth strategy.”