BW Energy's Innovative Maromba Development Strategy Unveiled
BW Energy Announces Major Development Plans for Maromba Field
BW Energy has made significant strides with its final investment decision (FID) regarding the Maromba development, located offshore Brazil. This project is aimed at efficiently extracting oil using an integrated drilling and wellhead platform along with a refurbished floating production storage and offloading unit (FPSO).
The Maromba field is set to target approximately 500 million barrels of oil in place, specifically from the Maastrichtian sands known for their extensive testing and delineation. The projected timeline foresees the commencement of oil production by the end of 2027, with an anticipated production plateau at 60,000 barrels of oil per day. This strategic enhancement is projected to more than double the company's net production by the year 2028, offering a rapid return on investment.
Key Highlights of the Maromba Project
The project features an initial launch of six production wells from the wellhead platform (WHP). Notably, the WHP will be a transformed drilling jack-up allowing up to 16 well slots, fully equipped with production and testing flowlines connected to the redeployed FPSO BW Maromba.
Moreover, BW Energy plans a second drilling campaign consisting of an additional six wells, allowing for a thorough appraisal of various reservoir horizons, thereby maximizing the usage of current field infrastructure.
The refurbishment of the BW Maromba FPSO is currently taking place at the COSCO yard in China, reinforcing BW Energy's commitment to sustainability and adaptation of existing infrastructure. The total investment for the Maromba project is approximately USD 1.5 billion, strategically divided into USD 1.2 billion for the initial phase and an additional USD 300 million for the secondary drilling campaign.
Environmentally Responsible Development Approach
In a recent statement, CEO Carl K. Arnet emphasized the value of optimizing the development plan, promoting a cost-effective approach through the use of existing assets such as a repurposed jack-up platform and FPSO, mirroring successful strategies previously employed in Gabon.
The environmental considerations are paramount, as repurposing existing energy infrastructure not only leads to reduced investments but also facilitates a shorter timeframe to first oil. This approach yields significantly lower greenhouse gas emissions compared to the establishment of new production assets, showcasing BW Energy’s commitment to sustainable practices.
Attractive Economic Projections for the Maromba Field
BW Energy anticipates an investment of approximately USD 1 billion leading up to first oil, along with an additional USD 200 million aimed at the first drilling campaign, projected to conclude before the end of 2028. Following this, a further investment of USD 300 million is designated for the second campaign of wells to be completed before the conclusion of 2030.
The company forecasts competitive production costs averaging below USD 10 per barrel over the initial five years of operation. This outlook underscores robust project economics and an estimated internal rate of return (IRR) exceeding 30% under a Brent oil price of USD 60 per barrel, with a break-even point around USD 40 per barrel.
Funding and Shareholder Support
To finance the ambitious development, BW Energy will utilize existing cash reserves, operational cash flow, and various financing solutions specific to the FPSO and WHP projects. The company is also exploring multiple financing avenues, including corporate facilities and reserve-based lending. Notably, the main shareholder, BW Group, has committed to a USD 250 million shareholder loan facility to facilitate the ongoing development.
Overview of the Maromba Field Specifications
Geographically, the Maromba field is located approximately 100 km from the Brazilian coastline within the Campos Basin, where prior drilling efforts have revealed oil in eight out of nine wells attempted between 1980 and 2006. The project aims at unlocking an estimated 123 million barrels of 2P reserves, with the possibility of discovering additional resources during development.
BW Energy acquired 100% ownership of the Maromba field in 2019 for USD 115 million, with USD 85 million yet to be paid based on pre-defined milestones. Furthermore, Magma Oil retains a 5% back-in right for the Maromba license once oil production begins.
As part of its growth strategy, BW Energy is maintaining compliance with the approval process set by the Brazilian O&G Regulator and the Environmental Agency. Ongoing actions include contracting for long-lead items and finalization of financing agreements.
For updates on the Maromba development, BW Energy plans to share comprehensive information during the earnings presentation in Oslo, Norway.
For further inquiries, please reach out to:
Brice Morlot, CFO BW Energy
Contact: +33.7.81.11.41.16
Email: ir@bwenergy.com
About BW Energy
BW Energy is a progressive exploration and production company focused on tapping into proven offshore oil and gas reserves through low-risk phased developments. The company's assets include a share in Dussafu Marine, Golfinho, Camarupim, and more, with net 2P+2C reserves and resources totaling 599 million barrels of oil equivalent as of early 2025.
Frequently Asked Questions
What is the Maromba field development?
The Maromba development focuses on the efficient extraction of oil from offshore Brazil using advanced technologies and repurposed infrastructure.
What production levels does BW Energy expect?
BW Energy projects first oil by the end of 2027, with a production plateau of 60,000 barrels per day anticipated.
How does this project align with sustainability goals?
The use of existing infrastructure aims to minimize greenhouse gas emissions while lowering the investment and time required to commence production.
What are the estimated costs for the Maromba project?
The total investment for the Maromba project is approximately USD 1.5 billion, divided into phases addressing both initial and secondary drilling campaigns.
Who can be contacted for more details about BW Energy?
For more information, please contact Brice Morlot, CFO of BW Energy, via email at ir@bwenergy.com.
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