BW Energy in talks with Petrobras to buy Brazilian offshore field

BW Energy confirms talks with Petrobras to buy deepwater field off Brazil

Oslo Stock Exchange-listed oil and gas E&P company BW Energy has confirmed it is engaged in discussions with Brazil’s state-owned oil and gas giant Petrobras to acquire the latter’s stake in a field located offshore Brazil.

FPSO Cidade de Vitoria working at the Golfinho field; Source: Petrobras

Back in January 2020, Petrobras disclosed its intention to sell its entire stake in two sets of deep-water post-salt offshore concessions. These are Golfinho and Camarupim clusters located in the Espírito Santo Basin.

In June 2021, reports emerged that Petrobras received a binding offer from BW Energy and DBO Energia for its Golfinho fields and it was reported that the Brazilian state-owned firm was expected to start bilateral negotiations with the top bidder shortly afterwards.

Addressing the recent speculation regarding the potential acquisition of the Golfinho field in Brazil, BW Energy on Tuesday confirmed it was engaged in discussions with Petrobras for a potential purchase of the Golfinho Cluster.

While the company explains that this is part of its continuous consideration of opportunities to acquire assets in line with its strategy, it also adds that it “can neither confirm nor deny that a transaction will take place at this time.”

Located at a water depth between 1,300 and 2,200 meters, the Golfinho cluster comprises the oil-producing Golfinho field and the Canapu non-associated gas producer, as well as the BM-ES-23 exploratory block.

The Golfinho field started operations in 2007 and the FPSO Cidade de Vitória, which belongs to Saipem, works on the field. This FPSO has the capacity to produce 100,000 barrels/day of oil and the charter contract with Petrobras expires in 2022.

The Golfinho field has six wells for oil production, two for gas production and two for water injection, which are connected to the FPSO Cidade de Vitória. The gas produced is exported through a 12’’ diameter pipeline to the Cacimbas Gas Treatment Unit for processing.

In a separate statement on Tuesday, Petrobras announced that the divestment process of the maritime concession called Golfinho cluster was still in the binding phase, adding that BW Energy was invited to the negotiation stage. The Brazilian state-owned player pointed out that the signing of the purchase and sale agreement was still subject to the approval of the “competent Petrobras bodies.”

The company also says that it “reinforces its commitment to the broad transparency of its divestment projects and portfolio management and informs that the subsequent stages of the project will be disclosed in a timely manner.”

Petrobras has been shedding off certain assets to further optimise its portfolio, pursue growth opportunities and enhance capital allocation, while focusing on its Brazilian assets in deep and ultradeep waters.

In line with this, the firm started several divestment processes. A few days after announcing its plans to sell its interest in the Gulf of Mexico assets in October 2021, the firm started the process for the sale of its entire interest in the Catuá field, located in the Campos Basin offshore Brazil.

At the end of October 2021, the company also announced the start of a bidding phase for the sale of the Uruguá and Tambaú fields, located in the Santos Basin off Brazil.

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In regards to the assets located in the Gulf of Mexico, Petrobras confirmed in February 2022 the beginning of the non-binding phase regarding the sale of its entire 20 per cent stake in a company, which holds these assets.