[Brazil] FPSO Cidade de Vitória (Divested)

[escveritas]

Operating In Brazil
Maximum Oil Production 100.000 Barrels Of Oil Per Day
Maximum Gas Production 130.68 Million Standard Cubic Feet Per Day

The platform vessel FPSO Cidade de Vitória (chartered to Petrobras, under the operation of the company Saipem) is anchored in the Golfinho field, located about 50 kilometers off the coast of Espírito Santo, on the coast of the municipality of Aracruz (ES), and operates exclusively in post-salt wells.

The maximum operating capacity installed at FPSO Cidade de Vitória is 100 thousand bpd and 3.5 million m3 of gas. Its production takes place at a water depth of 1386 meters and started in 2007. In addition to the Golfinho field, the FPSO Cidade de Vitória also produces oil and gas in the Canapu field, which is located 70 kilometers from the coast and had its production started in 2010.

FPSO (Floating Production Storage and Offloading) platform ships are floating oil and natural gas production, storage and transfer units. The oil production that is gradually stored in the tanks is drained to the refineries by means of relief vessels, which are nothing more than oil tankers that periodically connect to the FPSO to receive the oil and, thus, empty the tanks.

The gas production of FPSOs is compressed by subsea pipelines to onshore units, responsible for receiving, processing and offloading natural gas and derivatives. In the case of the Cidade de Vitória FPSO, the gas is compressed to the Cacimbas Gas Treatment Unit (UTGC), in Linhares (ES), through a 71-kilometer long gas pipeline.

[escveritas]

Signs agreement to acquire the FPSO Cidade de Vitoria, currently producing on the Golfinho field
24 June 2022

Signs agreement to acquire the FPSO Cidade de Vitoria, currently producing on the Golfinho field

BW Energy has signed an agreement to acquire the FPSO Cidade de Vitoria from Saipem for a cash consideration of USD 73 million.

The transaction is subject to fulfilment or waiver of conditions precedents with an expected closing and takeover of the FPSO in the first quarter of 2023.

The transaction will accelerate BW Energy’s build-up of a local operating organisation in Brazil and increase stakeholder engagement ahead of the Maromba development.

“Establishing a solid working relationship with Brazilian authorities and other stakeholders is key to a successful Maromba development. Having two operating assets in Brazil will create several synergies and make us an attractive local employer,” said Carl K. Arnet, the CEO of BW Energy.

The FPSO Cidade de Vitoria is a flexible unit with 1.6 million barrels of storage capacity. The unit can produce more than 100k barrels per day of oil and has additional capacity for gas production and compression. It positions BW Energy to efficiently increase production from the Golfinho cluster with ample oil and gas handling capacity to accommodate the upside from planned future developments. The FPSO acquisition will enable BW Energy to reduce the whole field OPEX.

BW Energy will pay Saipem USD 73 million in fixed consideration for the FPSO of which USD 25 million is due at closing, USD 13 million due at FPSO takeover and USD 35 million paid in 18 monthly instalments following the takeover.

[escveritas]

BW Energy: Golfinho transactions proceeds towards closing

March 16, 2023

Golfinho transactions proceeds towards closing

With reference to the stock exchange announcement published on 2 March 2023, BW Energy has today been informed that the work related to the Golfinho transactions can be restarted.

BW Energy will now continue to prepare for the closing of its acquisition of a 100% operated working interest (WI) in the Golfinho and Camarupim Clusters and 65% WI in the BM-ES-23 block from Petrobras, as well as taking over the FPSO Cidade de Vitoria from Saipem. This preparation work includes progressing relevant approvals from the Brazilian authorities, operational preparedness, field development planning and build-up of the local BW Energy organization. Closing the field transaction and FPSO takeover is subject to fulfilment or waiver of conditions precedent and the restart of the FPSO after upgrades required by ANP. The transactions are expected to close in the second quarter of 2023.