Gabon Oil Company enters BW Offshore’s Dussafu licence
BW Offshore, through its subsidiary BW Energy Gabon, has sold a ten percent interest of the Dussafu licence to the Gabon Oil Company (GOC).
BW said on the 19th March that the transaction was subject to the fulfilment of certain conditions, including approval from the government of Gabon, and entailed payment by GOC of US$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 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 licence.”
GOC’s interest will be retroactive from the date of first oil – 16th September 2018 – and GOC will assume ten percent of historical costs as authorized by the government of Gabon.
BW Offshore had produced first oil from the field via the BW Adolo FPSO on the 16th September 2018, 18 months after the initial investment was made in the Dussafu licence 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 which 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 licence, 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.
Source: Offshore Energy Today