Norway's BW Offshore has won approval from Brazilian oil regulator ANP for the purchase of the Maromba oilfield, part of the Oslo-listed company's plan to become an operator and not just a supplier of oil services, platforms and ships.
The purchase, from Chevron Corp and Petrobras, extends BW's operations in Brazil, where it already has two floating production, storage and offloading (FPSO) units.
The total purchase price for the oilfield, in the Campos Basin off the Brazilian coast, is $115 million, to be paid over three milestones as the development progresses toward producing its first oil.
Regulatory clearance will lead to the first milestone payment of $30 million, with other milestones marked by the start of drilling activities and first oil production, or three years after the start of drilling activities, whichever comes first.
BW Offshore had in March won approval from Brazil's antitrust watchdog, CADE, to buy the oilfield from Petrobras, which had a 70% participating interest, and Chevron, which held a 30% stake.
"Maromba represents further proof of our upstream business model," said Carl K. Arnet, chief executive of BW Offshore's BW Energy unit. "Maromba is expected to significantly increase our production from 2022 onwards and is a very important element in our growth strategy."
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