Norwegian oil and gas exploration and production company, BW Energy, has successfully concluded the acquisition of two clusters in the Espírito Santo Basin offshore Brazil, solidifying its position as an operator in the region.

In June 2022, BW Energy entered an agreement to acquire a 100% working interest in the Golfinho and Camarupim clusters, as well as a 65% stake in the BM-ES-23 block offshore Brazil from Petrobras. These acquisitions were accompanied by the purchase of the FPSO Cidade de Vitoria, operating on the Golfinho field, from Saipem. The transaction's completion was expected by the second quarter of 2023.

Despite a temporary suspension of the sale of the Golfinho and Camarupim clusters due to a broader review of Petrobras' divestment program initiated by Brazil's Ministry of Mines and Energy, the acquisition process was resumed in March 2023. As of August 28, 2023, BW Energy has completed the acquisition.

With the acquisition, BW Energy gains ownership and operatorship of daily oil production of around 10,000 barrels, opportunities for low-risk in-field development, and potential long-term gas accumulation. The purchase was funded through existing liquidity and an oil pre-payment facility. It involved an initial payment of $3 million in 2022 and a closing payment of $12.2 million, with additional contingent payments of up to $60 million tied to factors such as oil prices, well operations, and further asset development.

The acquired assets, located in the Espírito Santo Basin, include the Golfinho oil field, the Canapu non-associated gas field, and the exploration block BM-ES-23. The adjacent Camarupim cluster comprises the Camarupim and Camarupim Norte non-producing gas fields.

BW Energy anticipates value creation through existing and future gas resources, with plans to bring gas resources to the Brazilian gas market via the FPSO Cidade de Vitória's gas export line. The company estimates approximately 38 million barrels of oil equivalent (boe) of proven recoverable resources, including both developed and undeveloped assets, as well as 0.7 trillion cubic feet of recoverable gas accumulations.

This acquisition bolsters BW Energy's position in the region and aligns with its focus on growing production and resource base, setting the stage for phased development opportunities and near-field exploration in Brazil.