BW Energy moves forward with acquisition of FPSO Cidade de Vitória in Brazil

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Oslo-based BW Energy is set to proceed with its acquisition of the FPSO Cidade de Vitória, located on the Golfinho field in Brazil, following an agreement reached with the vessel’s Italian owner, Saipem. This development comes more than a year after the initial deal was struck between the two companies.

In June 2022, BW Energy and Saipem signed a memorandum of agreement (MOA) for the sale of the FPSO Cidade de Vitória, with a transaction value of US$73 million. However, the completion of this deal was contingent on BW Energy finalising its acquisition of the 100% operating working interest in the Golfinho field from Brazil’s state-owned Petrobras.

The sale of the Golfinho field faced delays when the Brazilian government initiated a review of Petrobras’ divestment program, which temporarily halted the process.

On August 28, Saipem announced that it had received an official notification confirming the successful closure of the Golfinho transaction between BW Energy and Petrobras. This pivotal development clears the path for the FPSO sale to proceed as planned.

Per the terms of the original MOA, BW Energy will make an initial payment of US$38 million, followed by an additional US$35 million paid in 18 monthly installments following the takeover.

Saipem will continue to operate the FPSO Cidade de Vitória during the transition period while working closely with BW Energy on the takeover and delivery process. The completion of this transition is anticipated within the fourth quarter of 2023.

Currently operating at full production capacity, the FPSO Cidade de Vitória has the capability to produce over 100,000 barrels per day of oil, along with additional capacity for gas production and compression. The vessel boasts a storage capacity of 1.6 million barrels.

The Golfinho cluster, situated in the Espírito Santo Basin, spans a water depth range of 1,300 to 2,200 metres. It includes the Golfinho oil field, the Canapu non-associated gas field, and the exploration block BM-ES-23, which hosts the Brigadeiro gas and condensate discovery. In contrast, the nearby Camarupim cluster is positioned at water depths ranging from 100 to 1,050 metres and consists of the non-producing gas fields of Camarupim and Camarupim Norte.

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