BW Energy sign agreement to purchase FPSO Polvo from BW Offshore.
BW Energy has decided to proceed with the Maromba development project offshore Brazil and signed an agreement to purchase the FPSO Polvo from BW Offshore. The FPSO will be upgraded and redeployed on the field. The development plan is based on an initial drilling campaign of three wells with planned first oil in 2025 and a second campaign with a further three wells in 2027. The investment decision is subject to certain conditions precedent, including completion of the project financing.
Highlights:
Phased subsea development with six production wells and tied back to a redeployed FPSO
First oil from Phase 1 planned in 2025
Expected peak oil production of 30-40,000 barrels per day
Agreement to purchase FPSO Polvo for a total consideration of USD 50 million
Plan for efficient FPSO refurbishment and life extension established
Unlocking material production
“We have worked to optimise the Maromba development plan since the acquisition in 2019 and during the Covid-19 pandemic. This includes technical evaluations, full-spectrum analysis of geological, seismic and well data, as well as extensive reservoir modelling and simulations. Based on our findings, we have decided to proceed with a development with six horizontal production wells connected to a FPSO to unlock significant oil production and long-term value generation for our stakeholders,” said Carl K. Arnet, the CEO of BW Energy.
A development in stages enables improved reservoir monitoring and optimisation of the second drilling campaign. Total oil production at peak is expected between 30-40,000 barrels per day. The technical evaluation revealed that water injection is not required for the first three wells and is a contingency for the second drilling campaign. Extensive work has also confirmed that Dual Electric Submersible Pumps offer the best artificial lift solution with extended life and reduced workover frequency. The subsea layout has also been enhanced to reduce costs and facilitate future expansions.
FPSO Polvo – “A near perfect fit”
FPSO Polvo recently ended its charter on the Polvo field in Brazil, which is located close to the Maromba field and has similar oil and reservoir characteristics. An assessment of refurbishment costs has been completed and discussions with relevant shipyards are well underway. The FPSO will be designed for up to 10 production wells with 1.2 million barrels of storage capacity. The total liquid capacity will be 85,000 barrels per day with oil production capacity of 65,000 barrels per day and water treatment capacity of 75,000 barrels per day.
BW Energy has signed an agreement to purchase the FPSO from BW Offshore effective no later than July 24, 2023, for a total consideration of USD 50 million. The valuation of the FPSO has been confirmed by an independent third party. The agreement to purchase the FPSO, instead of entering a traditional lease and operate contract, is a consequence of related- and associated-party tax legislation in Brazil.
Final Investment Decision (FID)
“The FPSO Polvo is a near perfect fit for Maromba. We know the vessel well and have extensive in-house competencies and capabilities in planning and executing such a repair and life extension project. Re-using existing energy infrastructure enables reduced investments, shorter time to first oil and significantly reduced CO2 emissions in the development phase as compared to installing new production assets,” said Carl K. Arnet.
Information Source: Read More–>
Energy, Climate, Renewable, Wind, Biomass, Sustainability, Oil Price, LPG, Solar, Commodity, Coal, Electric Power, Energy Transition, LNG, Natural Gas, Oil,
