BW Offshore: Acquisition of 30% stake in the Maromba field offshore Brazil
With reference to the stock exchange release dated 8 March 2019.
BW Offshore has entered into an agreement to acquire the remaining 30% of the Maromba field offshore Brazil for a total acquisition cost of USD 25 million from Chevron. Closing of the acquisition is subject to fulfilment or waiver of conditions precedents, including approval by The Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) to close the transaction and deem BW Offshore an approved operator in Brazil.
The acquisition price will be paid over three milestones. The first milestone of USD 10 million is due on receipt of ANP approval as operator and formal sanction of the transaction, expected in the second half of 2019. The second milestone of USD 5 million is due at start of drilling activities and the third part-payment, representing the remaining USD 10 million, after achieving cumulative production of 250,000 barrels of oil from the area.
The Company will proceed to finalise the Plan of Development (PoD) for approval by The Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP).
For further information, please contact:
Knut R. Sæthre, CFO, +47 911 17 876
About BW Offshore:
BW Offshore is a leading provider of floating production services to the oil and gas industry. The company also participates in developing proven offshore hydrocarbon reservoirs. BW Offshore is represented in all major oil and gas regions world-wide with a fleet of 15 owned FPSOs. The company has more than 30 years of production track record, having executed 40 FPSO and FSO projects. BW Offshore is listed on the Oslo Stock Exchange.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.