BW Energy’s acquisition of Golfinho and Camarupim clusters, and interest in exploration block BM-ES-23, offshore Brazil, has been approved by the Petrobras executive board.
Golfinho cluster lies in Espírito Santo basin, adjacent to BM-ES-23, which holds the Brigadeiro gas and condensate discovery. Water depths are 1,300-2,200 m. The cluster has several proven low risk in-field development opportunities, BW Energy said in a release June 23.
The Camarupim cluster is also adjacent to BM-ES-23 in 100-1,050 m of water. It comprises non-producing Camarupim and Camarupim Norte gas fields.
BW Energy will acquire 100% operated working interest in Golfinho and Camarupim clusters and the 65% interest in BM-ES-23 for an initial cash consideration to Petrobras of $3 million at signing and $12 million at closing, which is expected in first-quarter 2023.
Additionally, the company has agreed to contingent payments of up to $60 million after closing tied to oil price and production volume (from current producing assets and development of proven undeveloped resources/gas accumulations).
The acquisition is expected to add about 9,000 b/d oil production from early 2023.
BW Energy will be the operator in all concessions. PTTEP (20%) and Inpex (15%) will be partners in BM-ES-23 block.
Alex Procyk | Upstream Editor
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).