Acquisition of two Brazilian offshore assets going full steam ahead

Oslo Stock Exchange-listed oil and gas E&P company BW Energy is preparing for the closing of the acquisition of two clusters in the Espírito Santo Basin offshore Brazil, following a recent suspension of Petrobras’ divestment programme.

At the start of the month, BW Energy said it was informed by Petrobras of a review of the sale of Golfinho and Camarupim clusters, as part of a wider analysis of the Brazilian state-owned energy giant’s ongoing divestment programme, initiated by Brazil’s Ministry of Mines and Energy (MME). As explained at the time, the MME requested a suspension of ongoing sales of assets for 90 days without putting Petrobras’ interests at risk.

Originally, BW Energy inked an agreement in June 2022 to acquire a 100 per cent working interest in the Golfinho and Camarupim clusters and a 65 per cent stake in the BM-ES-23 block offshore Brazil from Petrobras. Following the completion of the transaction, BW Energy would be the operator of all concessions. In addition, the firm agreed to acquire the FPSO Cidade de Vitoria, producing on the Golfinho field, from Saipem. Both transactions were expected to close in the first quarter of 2023.

In an update on Thursday, 16 March 2023, BW Energy confirmed that the work related to the Golfinho transactions could be restarted. As a result, the company will continue to prepare for the closing of its acquisition of a 100 per cent operated working interest in the Golfinho and Camarupim clusters and 65 per cent stake in the BM-ES-23 block from Petrobras, as well as taking over the FPSO Cidade de Vitoria from Saipem.

According to BW Energy, this preparation work includes progressing relevant approvals from the Brazilian authorities, operational preparedness, field development planning and build-up of its local organisation. While the closing of 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, these transactions are now expected to close in the second quarter of 2023.

Located at a water depth between 1,300 and 2,200 metres in the Espírito Santo Basin, the Golfinho cluster comprises the Golfinho oil field, the Canapu non-associated gas field, and the exploration block BM-ES-23, which holds the Brigadeiro gas and condensate discovery.

On the other hand, the adjacent Camarupim cluster is located in water depths between 100 and 1,050 metres, comprising the non-producing gas fields of Camarupim and Camarupim Norte.