BW Offshore’s subsidiary, BW Energy Gabon Pte. Ltd (BWEG), has completed the acquisition of 25 percent working interest in the Dussafu production sharing contract offshore Gabon from Panoro Energy.
After BWEG became the majority owner in the Dussafu license through the acquisition of a 66.67 percent stake from Harvest Energia for $32 million in cash, the company decided to increase its stake in the permit through a deal with Panoro which held the remaining 33.33 percent.
In that regard, BW Offshore negotiated the acquisition of a further 25 percent working interest in the license from Pan-Petroleum Gabon B.V. (PPGBV), a subsidiary of Panoro Energy.
According to Panoro’s statement on Friday, the total cash consideration received for the license stake was $12 million.
The company added that PPGBV received $11 million in cash plus certain transaction date adjustments. As per the terms of the sale, the remaining $1 million will be paid in cash to PPGBV no later than December 30, 2017.
John Hamilton, CEO of Panoro, said: “We are excited about our new partnership with BW Offshore to develop the Dussafu oilfield. The closing of this transaction helps strengthen our balance sheet while retaining a fully financed interest in Dussafu.”
Panoro now holds an 8.333 percent working interest in the Dussafu PSC with the remaining 91.667 percent stake belonging to BWEG.
Also, PPGBV entered into a non-recourse loan facility whereby BWEG will provide up to $12.5 million to Panoro’s subsidiary in order to fund PPGBV’s share of all expenditures through the development phase to first oil production at Dussafu.
In a seperate statement, BW Offshore said that BWEG was in discussions with the Gabon Oil Company (GOC) for its participation.
Offshore Energy Today Staff