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Dato/tid 22.12.2016 07:30
Utsteder BW Offshore Limited
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Tittel BW Offshore: Acquisition of stake in Dussafu field
Tekst


BW Offshore has in partnership with the BW Group entered into agreement to
acquire 66.67% of the Dussafu production sharing contract offshore Gabon.
Subject to closing of this first transaction, the partnership has secured a
right to acquire a further 25% of the Dussafu license.

BW Offshore has formed a joint venture company with BW Group, known as BW Energy
Holdings  Pte. Ltd. ("BWEH"), for the purpose of pursuing oil and gas interests.
The  JV is owned  66.67% by BW Offshore  and 33.33% by Maple  Company Limited, a
wholly owned subsidiary of BW Group Limited.

A  wholly-owned subsidiary of BWEH, known as BW Energy Gabon Pte. Ltd. ("BWEG"),
has  entered into  a sale  and purchase  agreement with  Harvest Energia B.V. to
acquire its 100% interest in Harvest Dussafu B.V., which owns a 66.667% interest
in  the Dussafu production sharing contract  with an area covering 210,000 acres
located  offshore Gabon.  Harvest Energia  B.V. is  a wholly-owned subsidiary of
Harvest  Natural Resource,  Inc. (NYSE:HNR).  The acquisition  price is  USD 32
million in cash, subject to certain adjustments.

Closing  of the  transaction is  subject to  fulfilment or  waiver of conditions
precedents,  including  among  others,  approval  by the stockholders of Harvest
Natural  Resource,  Inc.  and  approval  from  the  government  of  Gabon. It is
estimated that closing will take place in Q1 2017.

The  remaining 33.333% interest in  the Dussafu block  is owned by Pan-Petroleum
Gabon B.V. ("PPGBV"), a subsidiary of the OSE-listed Panoro Energy ASA. BWEG has
also  entered into a memorandum of  understanding ("MOU") with PPGBV relating to
the  proposed acquisition of a further 25% interest in the Dussafu block for USD
12 million  in  cash  subject  to  the  closing  of  the Harvest transaction. In
connection with and subject to such acquisition from Panoro and Harvest, BWEH is
in discussions with the Gabon Oil Company (GOC) for their participation.

"We  have previously  said that  we are  exploring partnerships  and alternative
commercial  models. We are now starting to  deliver on this strategy. We see the
investment  in the Dussafu block as an attractive opportunity with the potential
to  create significant value for the shareholders of BW Offshore", said CEO Carl
K. Arnet of BW Offshore.

The  drop in oil price over the past years has reduced the costs of drilling and
subsea  equipment significantly, which in turn  has lowered the break-even price
required  for a  Dussafu development.  Following Gabonese  license requirements,
first oil is planned for 2018. CEO Carl K. Arnet further said, "The availability
of  production assets that match field requirements de-risks the development and
makes  it realistic to achieve first  oil within 2018. The project economics are
robust at and below the current oil price."

BWEH  plans  to  finance  the  acquisitions  from  Harvest Energia B.V and PPGBV
through  use of internal funds. In addition to the acquisition price payable for
the  interests, the field development  is estimated to cost  a total of USD 150
million until first oil.

BW Offshore will hold a conference call today at 10:00 a.m. Oslo time (CET).

Dial-in details: +47 21 00 00 12, code: 758919

A  recording of the conference call will be accessible on the Company`s website;
www.bwoffshore.com.

Please see the attached presentation for more details.





For further information, please contact:

Carl K. Arnet, CEO, +65 6570 3823

Knut R. Sæthre, CFO, +47 911 17 876



About BW Offshore:

BW Offshore is a leading global provider of floating production services to the
oil and gas industry. BW Offshore has a fleet of 14 owned FPSOs and one FSO
represented in all major oil & gas regions world-wide. BW Offshore has a long
track record on project execution and operations. In more than 30 years of
production, BW Offshore has executed 38 FPSO and FSO projects. The company 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.


 
    

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