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BRIEF-Bw Offshore JV in $32 mln agreement to buy Dussafu production sharing contract offshore Gabon
December 22, 2016 / 7:07 AM / a year ago

BRIEF-Bw Offshore JV in $32 mln agreement to buy Dussafu production sharing contract offshore Gabon

Dec 22 (Reuters) - BW Offshore :

* BW Offshore has in partnership with the BW Group entered into agreement to acquire 66.67 pct of the Dussafu production sharing contract offshore Gabon

* Subject to closing of this first transaction, the partnership has secured a right to acquire a further 25 pct of the Dussafu license

* BW Offshore has formed a joint venture company with BW Group, known as BW Energy Holdings Pte. Ltd. (“BWEH”), for the purpose of pursuing oil and gas interests

* The JV is owned 66.67 pct by BW Offshore and 33.33 pct by Maple Company Limited, a wholly owned subsidiary of BW Group Limited

* The seller is Harvest Energia B.V, a wholly-owned subsidiary of Harvest Natural Resource, Inc.

* A wholly-owned subsidiary of BWEH, known as BW Energy Gabon Pte. Ltd. (“BWEG”), has entered into a sale and purchase agreement with Harvest Energia B.V

* Harvest Energia B.V. owns a 66.667 pct interest in the Dussafu production sharing contract with an area covering 210,000 acres located offshore Gabon

* The acquisition price is USD 32 million in cash, subject to certain adjustments

* Closing of the transaction is subject to fulfilment or waiver of conditions, including among others, approval by the stockholders of Harvest Natural Resource, Inc. and approval from the government of Gabon

* The remaining 33.333 pct interest in the Dussafu block is owned by Pan-Petroleum Gabon B.V. (“PPGBV”), a subsidiary of the OSE-listed Panoro Energy ASA

* The BW Offshore JV has also entered into a memorandum of understanding with PPGBV relating to the proposed acquisition of a further 25 pct interest in the Dussafu block for USD 12 million in cash subject to the closing of the Harvest transaction

* BWEH plans to finance the acquisitions from Harvest Energia B.V and PPGBV

* through use of internal funds. In addition to the acquisition price payable for

* the interests, the field development is estimated to cost a total of USD 150

* million until first oil

* It is estimated that closing will take place in Q1 2017

* It plans to finance the acquisitions from Harvest Energia B.V and PPGBV through use of internal funds

* In addition to the acquisition price payable for the interests, the field development is estimated to cost a total of USD 150 million until first oil Source text for Eikon: Further company coverage: (Reporting By Ole Petter Skonnord)

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