Saipem Sells Brazilian-Based FPSO to BW Energy
The sale is subject to the closing of the acquisition by BW Energy of the 100% operating working interest in the Golfinho field from Petrobras.
Saipem has signed an agreement to sell FPSO Cidade de Vitoria, currently operated for Petrobras in the Golfinho field offshore Brazil, to BW Energy for $73 million.
The sale of the FPSO is subject to the closing of the acquisition by BW Energy of the 100% operating working interest in the Golfinho field from Petrobras expected in the first quarter of 2023.
The Cidade de Vitoria has 1.6 million bbl of storage capacity and can produce more than 100,000 B/D of oil. It also has additional capacity for gas production and compression.
Under the agreement, BW Energy will pay Saipem $25 million at the Golfinho transaction closing, $13 million at FPSO takeover and customs clearance, expected in 2023, and $35 million in 18 monthly installments following the takeover.
Considering the terms of the Golfinho transaction, the current lease and operate contract between Saipem and Petrobras, which would have expired in February 2023, has been extended until the FPSO takeover, or June 2024, whichever comes first.
Saipem noted the FPSO sale agreement is in line with the assumptions of its 2022–2025 strategic plan.
Earlier this month, BW Energy agreed to purchase the Golfinho and Camarupim offshore clusters in Brazil’s Espirito Santo basin from Petrobras for $75 million.
"Golfinho offers material ongoing production and cashflow in Brazil at an attractive price with significant upside potential in near-field exploration and phased developments,” said Carl K. Arnet, chief executive of BW Energy at the time of the deal. “It will diversify our production base, accelerate the buildup of the local operating organization, and provide an established working relationship with Brazilian stakeholders ahead of the Maromba development.”
The Golfinho cluster is made up of the Golfinho and Canapu fields, plus a 65% operated stake in Block BM-ES-23. The block holds the Brigadeiro discovery and other finds known as the Park of the Sweets area.