BW Energy’s internal estimate of the clusters is 38 million boe of proven recoverable resources, mainly comprising oil, of which 19 million boe are developed and producing and 19 million boe are undeveloped with defined infill opportunities
Petrobras has approved the sale of the Golfinho and Camarupim clusters in Brazilian waters to BW Energy for a consideration of up to $75m.
Through the deal, BW Energy will get 100% operated working interest in the Golfinho and Camarupim clusters as well as a 65% operating stake in the BM-ES-23 exploratory block in the Espirito Santo Basin.
BW Energy expects to add nearly 9,000 barrels of oil per day of oil production from early 2023 through the acquisition.
Its partners in the BM-ES-23 block will be PTTEP (20%) and INPEX (15%).
The BM-ES-23 block is part of the Golfinho cluster, which is located at a water depth of 1,300m-2,200m. The exploration block contains the Brigadeiro gas and condensate discovery.
According to BW Energy, the Golfinho cluster has various proven low risk in-field development opportunities with short lead times and considerable potential long-term upside from proven gas accumulations.
The Camarupim cluster is near Golfinho and is located in water depths of 100m-1,050m. It is made up of the non-producing Camarupim and Camarupim Norte gas fields.
BW Energy’s internal estimate of the clusters is 38 million barrels of oil equivalent (boe) of proven recoverable resources, mainly comprising oil. Of these 19 million boe are developed and producing and 19 million boe are undeveloped with defined infill opportunities.
The company has also identified an additional 0.7 trillion cubic feet of recoverable gas accumulations in the clusters for potential future development.
BW Energy CEO Carl Arnet said: “Golfinho offers material ongoing production and cashflow in Brazil at an attractive price with significant upside potential in near-field exploration and phased developments.
“It will diversify our production base, accelerate the build-up of the local operating organisation and provide an established working relationship with Brazilian stakeholders ahead of the Maromba development.”
As per the terms of the deal, BW Energy will make an initial payment of $3m to Petrobras at the time of its signing and $12m at closing. The former has agreed to up to $60m in contingent payments, which will be based on oil price and production volume.
Upon closing of the deal, BW Energy will take over the responsibility of field abandonment liability for the floating production storage and offloading (FPSO), the subsea system, and 13 wells. Petrobras will share the cost pertaining to four of those wells.
The deal, which is subject to fulfilment or waiver of preceding conditions, is anticipated to close in Q1 2023.
In April 2022, BW Energy said that it has decided to proceed with the Maromba development project, offshore Brazil in a phased manner via the drilling of six production wells.