BW Offshore moves to kick-start Dussafu project offshore Gabon

Harvest Natural Resources and Panoro Energy have signed transactions with Singapore-based BW Energy Gabon, a subsidiary of BW Offshore.

Offshore staff

HOUSTONHarvest Natural Resources and Panoro Energy have signed transactions with Singapore-based BW Energy Gabon (BWEG), a subsidiary of BW Offshore.

BWEG will acquire Harvest subsidiary Harvest Dussafu, which owns a 66.667% operated interest in theDussafu production-sharing contract (PSC) covering 210,000 acres offshore Gabon, for $32 million in cash.

Panoro subsidiary Pan Petroleum Gabon has a memorandum of understanding to sell a 25% interest in the PSC to the same buyer for $12 million, after which it would retain an 8.33% stake in the license.

In addition, Panoro will obtain a capped limited recourse development loan from BWEG to fund expenditures through first oil production in 2018. Panoro anticipates total capex to first oil of up to $150 million.

The deal remains subject to approval by the Gabonese government, but is expected to close during 1Q 2017.

12/22/2016

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