Norway-based E&P acquires Saipem’s US$73M FPSO to develop assets offshore Brazil

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Shortly after snatching up two major deepwater blocks offshore Brazil, Norway-based BW Energy inked a deal with Saipem to acquire the Cidade de Vitoria oil vessel to develop the Golfinho cluster.

According to BW, the deal amounts to US$73 million; US$38 million will be paid to Saipem when the floating, production, storage, and offloading (FPSO) vessel is taken over by 2023. Then, the final US$35 million will be paid in 18-month installments.

The company said the transaction will accelerate its build-up of a local operating organisation in Brazil and will increase stakeholder engagement ahead of the nearby Maromba development.

The Maromba heavy oil field is in the BC-20A Concession in the southern Campos Basin, approximately 100 kilometers (km) off the coast of the state of Rio de Janeiro, Brazil.

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BW’s Chief Executive Officer (CEO) Carl Arnet commented: “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.”

Saipem said that the Cidade de Vitoria FPSO is a flexible unit with the ability to store up to 1.6 million barrels. It can produce more than 100,000 barrels per day of oil and has additional capacity for gas production and compression.

The vessel now 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 and as an added benefit, will help BW to reduce the field’s operational expenditure.

BW, just days ago reached Petrobras to acquire the Golfinho and Camarupim offshore clusters in a deal costing up to US$75 million.

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.

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.

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