Closing of the acquisition is subject to fulfilment or waiver of conditions precedents, including approval by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) to close the transaction and deem BW Offshore an approved operator in Brazil.
Maromba is in the Campos basin in about 160 m (525 ft) of water depth. Internal estimates show potential recoverable resources of 100-150 MMbbl of low-sulphur 16 API oil in Maastrichtian sandstone reservoirs.
According to BW Offshore, eight of nine exploration and appraisal wells drilled to date have been successful and have found oil in multiple reservoirs. Four out of the eight successful wells have defined and delineated the Maastrichtian sand targets.
In addition to the Maastrichtian targets, prior exploration data yields more than 1 Bbbl of oil in place upside potential. This upside will be later defined by further appraisal work post first oil, similar to recent appraisal campaigns at theDussafu license offshore Gabon.
The Maromba field is located close to thePeregrino, Papa Terra, and Polvo oil fields where the company currently has or has had operations. The company intends to deploy one of its existing FPSOs to the field as part of a phased development to de-risk the project like at the Dussafu development.
CEO Carl K. Arnet said: “Maromba meets many of the criteria our E&P strategy is founded on; proven resources, high upside potential, located in a country where we currently operate, phased development and the use of one of our own FPSOs.
“We will pay approximately $1 per barrel of recoverable resources in an area we know well, and we are currently evaluating several development options within our phased development strategy that range from $3 to 7 of capital cost per recoverable barrel plus FPSO lease…”
The acquisition price will be paid over three milestones as the development progresses toward first oil. The first milestone of $20 million is due on receipt of ANP approval as operator and formal sanction of the transaction, expected in the second half of 2019. The second milestone of $20 million is due at start of drilling activities and the third part-payment, representing the remaining $50 million, is due at first oil or three years after the start of drilling activities, whichever comes first.
The acquisition of the remaining 30% field interest is pending board approval by Chevron.