Oslo-listed BW Energy has executed a sale and leaseback agreement with China’s Minsheng Financial Leasing for the MaBoMo production facility on the Dussafu Licence offshore Gabon.
The agreement will provide $150m of gross sales proceeds under a ten-year lease term with an option to repurchase the unit from the end of year seven.
According to the company, the transaction frees up $110m of net liquidity to BW Energy, in line with the working interest in the licence.
The proceeds will be used to finance the execution of the company’s growth strategy including the continuing development projects in Gabon.
“We are very pleased to have executed the lease financing with Minsheng Financial. It represents a new source of funding at an attractive capital cost and supports the execution of our strategy for long-term value creation,” said Knut R. Sæthre, CFO of BW Energy.
BW Energy holds a 73.5% interest in the Dussafu Marine permit off Gabon with Panoro as its only partner holding the remaining 17.5% stake.
The MaBoMo production facility is actually a modified offshore jackup production platform, formerly known as Hibiscus Alpha, and was repurposed as a platform with 12 well slots for the development of the Hibiscus and Ruche oil fields.
