As Petrobras divests, Norway-based E&P snatches up deepwater blocks

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Norway’s BW Energy has reached an agreement with Brazil’s state-owned Petrobras to acquire two of its major deepwater clusters – Golfinho and Camarupim – in a deal costing up to US$75 million.

The sale is part of Petrobras’ strategy to divest assets and focus on more profitable operations.

The Oslo Stock Exchange-listed exploration and production (E&P) company is expected to make an initial US$15 million payment upon closure of the deal and another US$60 million in contingent payments, influenced by future Brent prices and asset development.

According to BW, the acquisition is expected to add approximately 9,000 barrels of oil production per day from early 2023.

BW’s Chief Executive Officer (CEO) Carl Arnet commented: “Golfinho offers material ongoing production and cashflow in Brazil at an attractive price with significant upside potential in near-field exploration and phased developments.”

Petrobras to add 14 FPSOs offshore Brazil in next four years | OilNOW

He added “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.”

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.

Petrobras makes new oil find in Campos basin | OilNOW

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.

BW’s internal estimate of the newly acquired assets is said to be 38 million barrels of oil equivalent (boe) of proven recoverable resources, predominantly oil; of this, 19 million boe is developed and producing, and 19 million boe remains undeveloped.

The company also identified a further 0.7 trillion cubic feet (Tcf) of recoverable gas accumulations for potential future development.

On another note, BW has also acquired a 65% working interest in Brazil’s BM-ES-23 block; that deal will be finalised by the first quarter of 2023.

The company intends to finance this transaction through its cash flow and existing liquidity.

BW is a wholly-owned subsidiary of BW Energy Ltd., an E&P company focused on low-risk petroleum reservoirs, for phased development and with access to existing production facilities.


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