BW Offshore: Agreement with Gabon Oil Company for farm-in in the Dussafu license
(With reference to stock exchange releases dated 10 April 2017 and 28 April 2017)
BW Energy Gabon SA ("BWE"), a subsidiary of BW Offshore and the operator of the Dussafu license, has today entered into an agreement with Gabon Oil Company (GOC) for the acquisition of a 10% interest in the Dussafu production sharing contract.
The transaction is subject to the fulfilment of certain conditions precedents, including approval from the government of Gabon and entails payment by GOC of USD 28.5 million, representing a reimbursement equivalent to 10% of development and production costs from April 2017 and to-date.
"We are very pleased to welcome GOC as a partner in the Dussafu licence," said CEO Carl K. Arnet of BW Offshore. "We are about to commence the next exciting phase of the development to increase oil production and identify additional reservoirs which will support long-term value creation from the Dussafu license."
GOC's interest will be retroactive from the date of First Oil, being 16 September 2018, and GOC shall assume 10% of historical costs as authorised by the government of Gabon. GOC will contribute to cash calls for the development and production of the field and adhere to the joint operating agreement and lifting arrangements that are currently in force between the contracting parties.
BWE's interest will be reduced to 81.667% and Panoro will continue to hold 8.333%. Tullow Oil Gabon has exercised its back-in right to the Dussafu license. When this transaction is concluded the interests of parties in the production sharing contract; BWE, Panoro, GOC and Tullow, will be 73.5%, 7.5%, 9% and 10% respectively, as previously announced.
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.