[Brazil] Golfinho - FPSO Cidade de Vitoria

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escveritas
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[Brazil] Golfinho - FPSO Cidade de Vitoria

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



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
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Re: [Brazil] Golfinho - FPSO Cidade de Vitoria

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Offer for Golfinho and Camarupim Clusters offshore Brazil approved by Petrobras
23 June 2022

Offer for Golfinho and Camarupim Clusters offshore Brazil approved by Petrobras

BW Energy has been notified that the Company’s offer to acquire the Golfinho and Camarupim Clusters offshore Brazil has been approved by the Petrobras Executive Board. The acquisition is expected to add approximately 9,000 barrels of oil per day of oil production from early 2023. The Golfinho Cluster has several proven low risk in-field development opportunities with short lead times and substantial potential long-term upside from proven gas accumulations.

The transaction is subject to fulfilment or waiver of conditions precedent with an expected closing and effective date in the first quarter of 2023.

Highlights
  • Acquisition of 100% operated working interest (“WI”) in the Golfinho and Camarupim clusters and 65% WI in the BM-ES-23 block
  • USD 15 million in initial cash considerations and up to USD 60 million in contingent payments linked to oil price, well operations and further successful development of the acquired assets
  • The Company’s internal estimate is 38 million boe of proven recoverable resources, predominantly oil, of which 19 million boe developed and producing and 19 million boe undeveloped, defined infill opportunities
  • The Company has identified a further 0.7 Tcf of recoverable gas accumulations for potential future development
  • Establishing a solid working relationship with Brazilian regulators will unlock significant synergies ahead of the Maromba development
    The transaction will be financed through BW Energy’s cash flow and existing liquidity
"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,“ said Carl K. Arnet, the CEO of BW Energy.

The Golfinho Cluster is located at a water depth between 1,300 and 2,200 meters 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 meters, comprising the non-producing gas fields of Camarupim and Camarupim Norte.

Transaction details

BW Energy will acquire the 100% operated WI in the Golfinho and Camarupim clusters and the 65% WI in the BM-ES-23 block for an initial cash consideration to Petrobras of USD 3 million at signing and USD 12 million at closing. Additionally, the Company has agreed contingent payments after closing of up to USD 60 million tied to oil price and production volume (from current producing assets and development of proven undeveloped resources/gas accumulations).

BW Energy will be the operator in all the concessions, with PTTEP (20% WI) and Inpex (15% WI) as partners in the BM-ES-23 block. BW Energy will, upon closing, assume field abandonment liability for the FPSO, the subsea system and 13 wells, of which Petrobras will share the cost of four wells.
escveritas
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Re: [Brazil] Golfinho - FPSO Cidade de Vitoria

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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.
escveritas
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Re: [Brazil] Golfinho - FPSO Cidade de Vitoria

Unread post by escveritas »

BW Energy Completed Golfinho acquisition and becomes operator offshore Brazil

28 August 2023
Completes Golfinho acquisition and becomes operator offshore Brazil

BW Energy has today completed the acquisition of the Golfinho and Camarupim Clusters from Petrobras and assumed ownership and operatorship of approximately 10,000 barrels 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.

"We are pleased to complete the transaction to become the owner of material production and cashflow in Brazil and to diversify our production and resource base. We have a strong local organisation in place ready to assume operatorship and capture a significant potential for value creation through already identified phased development opportunities and near-field exploration, “said Carl K. Arnet, the CEO of BW Energy.

The transaction is financed through BW Energy’s existing liquidity and an oil pre-payment facility, with USD 12.2 million paid at closing following an initial USD 3 million payment at signing in 2022. Further, the agreement includes up to USD 60 million in future contingent payments linked to oil price, well operations and further successful development of the acquired assets.

The Golfinho Cluster is located at a water depth between 1,300 and 2,200 meters 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 meters, 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 monetise 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 million boe of proven recoverable resources, predominantly oil, of which 19 million boe developed and producing and 19 million boe 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.
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