Energy SpA — M&A Activity 2023

Aug 28, 2023

BW Energy: Completes Golfinho acquisition and becomes operator offshore Brazil 

BW Energy: Completes Golfinho acquisition and becomes operator offshore Brazil

Completes Golfinho acquisition and becomes operator offshore Brazil

BW Energy has today completed the acquisition of the Golfinho and Camarupim

Clusters from Petrobras and assumed ownership and operatorship of approximately

10,000 barrels of daily oil production, several proven low risk in-field

development opportunities with short lead times and substantial potential long-

term upside from proven gas accumulations.

After completion, BW Energy holds 100% working interest (WI) in the Golfinho and

Camarupim Clusters and 65% WI in the BM-ES-23 block. The closing of the

transaction follows a period of stable oil production after the restart of the

FPSO Cidade de Vitória following repairs and upgrades.

"We are pleased to complete the transaction to become the owner of material

production and cashflow in Brazil and to diversify our production and resource

base. We have a strong local organisation in place ready to assume operatorship

and capture a significant potential for value creation through already

identified phased development opportunities and near-field exploration, "said

Carl K. Arnet, the CEO of BW Energy.

The transaction is financed through BW Energy's existing liquidity and an oil

pre-payment facility, with USD 12.2 million paid at closing following an initial

USD 3 million payment at signing in 2022. Further, the agreement includes up to

USD 60 million in future contingent payments linked to oil price, well

operations and further successful development of the acquired assets.

The Golfinho Cluster is located at a water depth between 1,300 and 2,200 meters

in the Espírito Santo Basin. Adjacent is the BM-ES-23 exploration block which

holds the Brigadeiro gas and condensate discovery. The Camarupim Cluster is also

adjacent and located in water depths between 100 and 1,050 meters, comprising

the non-producing gas fields of Camarupim and Camarupim Norte.

In addition to ongoing oil production revenues and previously identified infill

drilling opportunities and oil upside developments, this transaction presents a

value-creative opportunity to monetise existing and future gas resources. These

resources will be brought to shore and sold in the already established Brazilian

gas market for which the FPSO Cidade de Vitória is connected. This connection is

via a gas export line that BW Energy will acquire and control as part of the

transaction.

The Company's internal estimate is 38 million boe of proven recoverable

resources, predominantly oil, of which 19 million boe developed and producing

and 19 million boe undeveloped, defined infill opportunities. BW Energy has

identified a further 0.7 Tcf of recoverable gas accumulations for potential

future development.

The acquisition of the FPSO from Saipem is expected to be completed in the

fourth quarter when the current short-term lease and operate contract for the

FPSO expires.

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 production facilities 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, a

95% interest in the Maromba field in Brazil and a 95% interest in the Kudu field

in Namibia, all operated by BW Energy. Total net 2P+2C reserves and resources

were 428 million barrels of oil equivalents at the start of 2023.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.