BW Offshore: Agreement with Gabon Oil Company for farm-in in the Dussafu license
March 19 2019 - 8:15AM
(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.
This
announcement is distributed by West Corporation on behalf of West
Corporation 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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