BW Offshore, through its subsidiary BW Energy Gabon, has sold a ten percent interest of the Dussafu license to the Gabon Oil Company (GOC).
BW said on Tuesday that the transaction was subject to the fulfillment of certain conditions, including approval from the government of Gabon, and entailed payment by GOC of $28.5 million.
The payment represents a reimbursement equivalent to ten percent of development and production costs from April 2017 to date.
BW Offshore CEO Carl K. Arnet said: “We are very pleased to welcome GOC as a partner in the Dussafu license. We are about to commence the next exciting phase of the development to increase oil production and identify additional reservoirs which will support long-term value creation from the Dussafu license.”
GOC’s interest will be retroactive from the date of first oil – September 16, 2018 – and GOC shall assume ten percent of historical costs as authorized by the government of Gabon.
To remind, BW Offshore produced first oil from the field via the BW Adolo FPSO on September 16, 2018, 18 months after the initial investment was made in the Dussafu license offshore Gabon.
“GOC will contribute to cash calls for the development and production of the field and adhere to the joint operating agreement and lifting arrangements that are currently in force between the contracting parties,” BW said. As a result of GOC’s acquisition, BW’s interest will be reduced to 81.667% while Panoro would hold 8.333%.
Also, since Tullow Oil Gabon exercised its back-in right to the Dussafu license, the parties in the production sharing contract would be BW, Panoro, GOC, and Tullow with a 73.5%, 7.5%, 9%, and 10% stake, respectively, when the transaction is completed.