BW Energy has taken a final investment decision (FID) on the $1.5bn development of its 100% owned Maromba oil field, located offshore Brazil in the Campos Basin.
The project aims to employ a cost-effective strategy, integrating a drilling and wellhead platform with a refurbished floating production storage and offloading (FPSO) unit.
Targeting 500 million barrels of oil in the extensively explored Maastrichtian sands, the company plans to commence production by the end of 2027. BW Energy is aiming for a production plateau of 60,000 barrels per day.
The initial phase includes six production wells from the wellhead platform, which is being converted from a drilling jack-up with capacity for up to 16 wells. These wells will connect to the redeployed FPSO BW Maromba.
A second drilling campaign of six wells is planned to optimise existing infrastructure and explore additional reservoir horizons. Refurbishment and life extension work are underway at the COSCO yard in China.
Located about 100km off Brazil’s coast, the Maromba field comprises 123 million barrels of proven reserves with further exploration potential.
The development strategy for the Maromba oil field involves six initial horizontal production wells fitted with electric submersible pumps for artificial lift. Oil production capacity is designed for 65,000 barrels per day, with total liquid capacity and water treatment capacities being 100,000 and 85,000 barrels per day respectively.
The infrastructure will support future development phases, including potential low-cost infill wells and water injectors.
BW Energy has acquired a jack-up rig for $107.5m, set for limited conversion to function as an integrated platform prior to installation.
BW Energy CEO Carl Arnet said: “We have spent time on optimising the Maromba development plan and concluded on a highly competitive concept with a repurposed jack-up platform and FPSO, repeating the approach we very successfully applied in Gabon.
“Maromba will enable BW Energy to deliver industry-leading organic production growth and position the company for further low-cost developments of known potential developments. We expect to unlock significant shareholder value in all realistic oil price scenarios.”
BW Energy expects to invest $1bn before reaching first oil, with an additional $200m required for the initial drilling campaign by the end of 2028. The company plans a further $300m investment in a second drilling phase by 2030.
The project targets competitive production costs below $10 per barrel over five years, expecting an internal rate of return exceeding 30% with Brent crude oil priced at $60 per barrel.
BW Energy intends to source the funding from existing cash reserves, operational cash flow, and specific financing solutions related to the FPSO and WHP. Additional financing options are under consideration, including corporate facilities and potential bond issues.
A $250m shareholder loan facility commitment from BW Group supports this financial strategy.
Last month, BW Energy took FID on another offshore Brazilian project, Golfinho Boost. This project aims to increase uptime, reduce operating expenses and add nearly 3,000 barrels per day of incremental oil production from 2027 at the Golfinho field.
