Saipem strikes deal with Norwegian player for sale of Cidade de Vitoria FPSO

Italy’s Saipem has signed a deal with Norwegian operator BW Energy to sell the floating production storage and offloading (FPSO) vessel Cidade de Vitoria, which is currently working for Petrobras at the Golfinho field offshore Brazil.

Saipem confirmed it has signed a Memorandum of Agreement (MoA) with BW Energy for the sale of FPSO Cidade de Vitoria.

“Under the MoA, BW Energy will pay Saipem $73 million of which $25 million is due at the Golfinho transaction closing, $13 million is due at FPSO takeover and customs clearance, expected in 2023, and $35 million will be paid in 18 monthly instalments following the takeover,” Saipem noted.

Earlier in June, BW Energy agreed to purchase for $75 million the Golfinho and Camarupim offshore clusters in Brazil’s Espirito Santo basin from national oil giant Petrobras.

Saipem added that the sale of the FPSO is “subject to the closing of the acquisition by BW Energy of the 100% operating working interest in the Golfinho field from Petrobras”, which is expected in the first quarter of 2023.

The Italian contractor further said that considering the terms of the Golfinho transaction, the “current lease and operate contract between Saipem and Petrobras - which would have expired in February 2023 - has been extended until the FPSO takeover, or June 2024, whichever comes first".

Saipem also noted the FPSO sale agreement is in line with the assumptions of its 2022-2025 strategic plan.

The Golfinho cluster is situated in water depths of between 1300 and 2200 metres. The cluster comprises the Golfinho and Canapu fields, plus a 65% operated stake in Block BM-ES-23, home of the Brigadeiro discovery and other finds known as the Park of the Sweets area.

According to BW Energy, the Golfinho cluster has several proven low-risk infield development opportunities with substantial potential long-term upside from gas accumulations.

“Golfinho offers material ongoing production and cash flow in Brazil at an attractive price with significant upside potential in near-field exploration and phased developments,” BW Energy chief executive Carl Arnet recently noted.

The Golfinho field in May produced 8600 barrels per day of oil via the Cidade de Vitoria FPSO.

The floater in 2007 started operations at Golfinho and is currently producing via five wells.

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