BW Energy Closes Deal to Acquire Saipem FPSO in Brazil

(OE) Norway’s BW Energy is now able to move forward with its acquisition of the FPSO Cidade de Vitória on the Golfinho field in Brazil, more than a year after it reached a deal with the FPSO’s Italian owner Saipem.

The two companies had signed a memorandum of agreement (MOA) for the $73 million floater sale in June 2022, but the transaction was subject to BW Energy closing its acquisition of the 100% operating working interest in the Golfinho field from Brazil’s state-owned Petrobras.

The sale of the Golfinho field became delayed when the Brazilian government ordered a review of Petrobras’ divestment program.

Saipem announced on Monday that it received official notification that BW Energy and Petrobras achieved the Golfinho transaction closing, clearing way for the FPSO sale to proceed.

According to original MOA, BW Energy will now pay $38 million plus an additional $35 million paid in 18 monthly installments following the takeover.

Saipem said it will continue to operate the FPSO while it works with BW Energy on the takeover and delivery process, which is expected to wrap up within the fourth quarter of 2023.

Currently operating at full production, the FPSO Cidade de Vitória can produce more than 100,000 barrels per day of oil and has additional capacity for gas production and compression. The unit has 1.6 million barrels of storage capacity.

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