BW Energy's Brazilian Oil Field Purchase Faces Delay Amidst Petrobras' Divestment Program Review

OE Staff
Thursday, March 2, 2023

Oslo-listed oil and gas company BW Energy said its planned acquisitions of Petrobras' working interest in Golfinho and Camarupim deepwater oil fields, and the related FPSO from Saipem, were facing delays as a Brazilian ministry has ordered a review of Petrobras divestment program.

"BW Energy has been informed by Petrobras of a review of the Golfinho and Camarupim Clusters transactions as part of a wider analysis of Petrobras' ongoing divestment program initiated by the Ministry of Mines and Energy (MME) in Brazil," BW Energy said.

The company said that MME had requested a suspension of ongoing sales of assets for 90 days without putting Petrobras' interests at risk, according to a Petrobras filing with the U.S. Securities and Exchange Commission which includes a letter from the Brazilian Ministry of Mines and Energy (MME) dated February 28, 2023.

In June 2022, BW Energy signed an agreement to acquire 100% working interest (WI) in the Golfinho and Camarupim Clusters and 65% WI in the BM-ES-23 block offshore Brazil from Petrobras. BW Energy will be the operator in all the concessions. 

BW Energy also agreed to buy the FPSO Cidade de Vitoria, producing on the Golfinho field, from Saipem.

Both transactions, subject to fulfilment of waiver of conditions precedent, were expected to close in in the first quarter of 2023.

"It is anticipated that that the MME's general suspension request may result in a delay to the closing of the transactions. BW Energy will keep the market updated on developments relating to the suspension request when and if appropriate," BW Energy said.

Categories: Energy Industry News Activity South America Floating Production

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