BW Offshore: Acquisition of stake in Dussafu field
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;
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.