BW Energy Gabon Pte. Ltd.’s plan to start oil production from the Dussafu production-sharing contract offshore Gabon next year has advanced with the firming of two deals to acquire interests totaling 91.67% (OGJ Online, Dec. 22, 2016).
The company’s $32-million purchase of a 66.67% stake from a unit of Harvest Natural Resources Inc. received approval by the seller’s shareholders.
And the wholly owned subsidiary of BW Energy Holdings Pte. Ltd. entered a definitive agreement to acquire a 25% working interest in the PSC from Pan-Petroleum Gabon BV, a wholly owned subsidiary of Panoro Energy ASA, London, for $12 million. The seller’s interest now is 33.33%.
Harvest shareholders also approved dissolution of the company once the sale is completed and proceeds are distributed.
BW Energy Holdings is a joint venture of BW Offshore (66.67%) and Maple Co. Ltd., a wholly owned subsidiary of BW Group Ltd., Singapore.
Harvest Dussafu BV made two presalt oil discoveries on the block: Ruche in 2011 and Tortue in 2013. Both found pay in the Cretaceous Gamba and Dentale formations. Oil discoveries preceding Harvest’s acquisition of the interest include Moubenga in 1981 and Walt Whitman in 1996.
The Gabonese government awarded an exclusive exploitation authorization for development of all four fields inside a 2,775-sq km license named for Ruche field, where water depth is about 120 m. PSC area outside the license has been relinquished. Production is to start by mid-2018.
The development plan is for horizontal and vertical wells completed subsea and tied back to a floating production, storage, and offloading vessel moored at Ruche field.
When BW Energy entered preliminary agreements to acquire the Dussafu interests last December, it estimated development costs beyond the interest acquisitions at $150 million.
