Energy SpA — M&A Activity 2022

Jun 24, 2022

BW Energy: Signs agreement to acquire the FPSO Cidade de Vitoria, currently producing on the Golfinho field  

BW Energy: Signs agreement to acquire the FPSO Cidade de Vitoria, currently producing on the Golfinho field

Signs agreement to acquire the FPSO Cidade de Vitoria, currently producing on

the Golfinho field

BW Energy has signed an agreement to acquire the FPSO Cidade de Vitoria from

Saipem for a cash consideration of USD 73 million.

The transaction is subject to fulfilment or waiver of conditions precedents with

an expected closing and takeover of the FPSO in the first quarter of 2023.

The transaction will accelerate BW Energy's build-up of a local operating

organisation in Brazil and increase stakeholder engagement ahead of the Maromba

development.

"Establishing a solid working relationship with Brazilian authorities and other

stakeholders is key to a successful Maromba development. Having two operating

assets in Brazil will create several synergies and make us an attractive local

employer," said Carl K. Arnet, the CEO of BW Energy.

The FPSO Cidade de Vitoria is a flexible unit with 1.6 million barrels of

storage capacity. The unit can produce more than 100k barrels per day of oil and

has additional capacity for gas production and compression. It positions BW

Energy to efficiently increase production from the Golfinho cluster with ample

oil and gas handling capacity to accommodate the upside from planned future

developments. The FPSO acquisition will enable BW Energy to reduce the whole

field OPEX.

BW Energy will pay Saipem USD 73 million in fixed consideration for the FPSO of

which USD 25 million is due at closing, USD 13 million due at FPSO takeover and

USD 35 million paid in 18 monthly instalments following the takeover.

For further information, please contact:

Knut R. Sæthre

CFO BW Energy

+47 91 11 78 76

ir@bwenergy.no

About BW Energy:

BW Energy is a growth E&P company with a differentiated strategy targeting

proven offshore oil and gas reservoirs through low risk phased developments. The

Company has access to existing FPSOs to reduce time to first oil and cashflow

with lower investments than traditional offshore developments. The main assets

are 73.5% of the producing Dussafu Marine Permit offshore Gabon and a 95%

interest in the Maromba field in Brazil, both operated by the Company. Total net

2P+2C reserves were 240 million barrels at the start of 2022.

This information is considered inside information pursuant to the EU Market

Abuse Regulation and is subject to the disclosure requirements pursuant to

Section 5-12 the Norwegian Securities Trading Act. This stock exchange release

was published by Regine Andersen, IT & Communication Support, 24 June 2022