BW Energy warns of deal delays as Brazil pauses Petrobras divestments
BW Energy, an affiliate of Singapore’s BW Group, has warned that Brazil’s request for Petrobras to halt the sale of assets for 90 days may delay the completion of purchases it agreed with the state-run oil giant and Saipem last year.
The Oslo-listed company has been informed by Petrobras of a review of the Golfinho and Camarupim Clusters transactions as part of a wider analysis of its ongoing divestment program, initiated by the Ministry of Mines and Energy (MME) in Brazil.
Last June, BW Energy struck a deal with Petrobras to acquire 100% working interest in the Golfinho and Camarupim Clusters and 65% stake in the BM-ES-23 block offshore Brazil. The company also agreed to acquire the FPSO Cidade de Vitoria, producing on the Golfinho field, from Saipem.
The Petrobras deal is worth up to $75m. BW Energy is expected to pay $15m when the deal closes and up to $60m depending on the oil price and production volume. Meanwhile, the deal with Saipem is worth around $73m. The company said in June 2022 it would pay $25m to Saipem at the closing of the Golfinho transaction, $13m at the FPSO takeover and customs clearance and $35m in 18 monthly instalments following the takeover.
Both transactions were expected to close in the first quarter of 2023, but BW Energy said in a regulatory filing that the Brazilian ministry’s general suspension request could now slow down the closing of the transactions.
