BW Offshore: Acquisition of stake in Dussafu field
December 22 2016 - 12:30AM
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.
BWO Dussafu presentation
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: BW Offshore via Globenewswire
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