May 06, 2025 (MarketLine via COMTEX) --
BW Energy has announced the final investment decision (FID) for the Maromba field development offshore Brazil, aiming to tap into an estimated 500 million barrels (mbbl) of oil.
The Maromba field development will feature an integrated drilling and wellhead platform (WHP) and a refurbished floating production storage and offloading (FPSO) unit, BW Maromba.
The initial phase involves six production wells, with a second drilling campaign planned to maximise field infrastructure.
The total investment is projected to be around $1.5bn, with $1.2bn allocated for the initial development and an additional $300m for the secondary drilling campaign.
BW Energy CEO Carl K. Arnet said: “We have spent time on optimising the Maromba development plan and concluded on a highly competitive concept with a repurposed jack-up platform and FPSO, repeating the approach we very successfully applied in Gabon.
“Maromba will enable BW Energy to deliver industry-leading organic production growth and position the company for further low-cost developments of known potential developments. We expect to unlock significant shareholder value in all realistic oil price scenarios.”
The WHP, a converted drilling jack-up, will be installed at a depth of approximately 150m and equipped with up to 16 well slots.
The FPSO Maromba, with a storage capacity of 1mbbl, is currently undergoing refurbishment at the COSCO yard in China. BW Energy has committed $107.5m to acquire a jack-up rig for conversion into the WHP.
BW Energy anticipates investing $1bn before first oil, with an additional $200m for the initial drilling campaign, followed by $300m for the secondary six-well campaign.
The company expects the Maromba field to achieve production costs of less than $10 per barrel (bbl) over the first five years, with an internal rate of return exceeding 30% at $60/bbl Brent crude.
Financing for the development will come from existing cash, undrawn facilities, operations cash flow and infrastructure financing solutions for the FPSO and WHP.
BW Energy is also exploring various financing alternatives including corporate facilities and potential bond issuance. A $250m shareholder loan facility from main shareholder BW Group has been secured.
Maromba, located in the Campos Basin, has seen nine wells drilled between 1980 and 2006, with oil discoveries in eight.
The project targets 123 million barrels of 2P (proved plus probable) reserves, with additional resources expected from other reservoirs.
BW Energy acquired 100% ownership of Maromba in 2019 for $115m, with $85m due at predefined milestones. Magma Oil holds a 5% back-in right, expected to be executed upon first oil.
The company is progressing with the approval process with the Brazilian O&G Regulator and the Environmental Agency, and is finalising contracts for long-lead items and services, as well as financing agreements.
In related news, BW Energy has announced a significant oil discovery at the Bourdon prospect within the Dussafu Licence offshore Gabon, with an estimated 56mbbl of oil in place.
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