BW Offshore moves on Gabon PSC
OSLO, December 22, 2016 – BW Offshore will acquire a majority shareholding in the Dassafu production-sharing contract (PSC) area offshore Gabon, the company said on Thursday.
The transaction for the 66.67% stake will be made via the company’s BW Energy vehicle, a joint venture with BW Group entity Maple.
To that end, BW Energy will take a 100% interest in Harvest Dassafu, the Harvest Natural Resources subsidiary that holds the 66.67% shareholding. BW Energy has also sealed a memorandum of understanding with Panoro Energy in a bid to increase its stake. It has offered USD 12 million in an effort to acquire 25% of Panoro’s 33.333% interest in the PSC.
“We have previously said that we are exploring partnerships and alternative commercial models. We are now starting to deliver on this strategy. We see the investment in the Dussafu block as an attractive opportunity with the potential to create significant value for the shareholders of BW Offshore,” CEO Carl K. Arnet said on the company’s website.
The transaction with Harvest Natural Resources, valued at USD 32 million, is expected to close in the first quarter of 2017. First Dassafu oil is slated for 2018. Cost of development is tentatively put at USD 150 million.