BW Offshore in December last year announced the Letter of Intent to acquire 30% of the participating interests in the Polvo oil field in Brazil from HRT O&G Exploração e Produção de Petróleo Ltda. (“HRT”).
Such transaction was subject to due diligence, and regulatory, governmental and board approvals. Upon the expiry of the backstop date under the LOI on 8 April 2014, BW Offshore elected to terminate the aforesaid LOI pursuant to its terms.
BW Offshore is operating the FPSO Polvo on the Polvo field under a fixed contract until Q3 2015, with options until Q3 2022.
The company said that BW Offshore and HRT would continue their positive working relationship in operating the field.
The Polvo oil field is located in the Campos basin in Brazil. The field was brought on stream in 2007, with a 2013 year to date production of approximately 12,000 bopd. The field installations include the FPSO Polvo, the Polvo A wellhead platform with a drilling rig and an infield pipeline.