Agreement to divest the FPSO Polvo to BW Energy

Agreement to divest the FPSO Polvo to BW Energy

BW Offshore has signed an agreement for the sale of the FPSO Polvo to BW Energy for a total consideration of USD 50 million. The sale will be completed no later than July 24, 2023. BW Energy has the option to complete the transaction before that date.

If the transaction is completed early, BW Energy will pay USD 30 million upon the vessel transfer date, with the remaining USD 20 million provided as a seller’s credit by BW Offshore until settlement on July 24, 2023, at the latest. An independent third-party valuation of the FPSO concluded that the sales price is within a fair market value range.

FPSO Polvo vessel recently ended its charter on the Polvo field in Brazil and is currently in lay-up in Dubai. BW Energy plans to redeploy the FPSO on the Maromba field offshore Brazil. The decision to divest the FPSO, instead of entering a traditional lease and operate contract with BW Energy, is due to regulatory challenges under Brazilian related- and associated-party legislation.

For further information, please contact:
Ståle Andreassen, CFO, +65 97 27 86 47
Anders S. Platou, Head of Corporate Finance & Strategy, +47 99 50 47 40

IR@bwoffshore.com or www.bwoffshore.com

About BW Offshore

BW Offshore engineers innovative floating production solutions. The Company has a fleet of 12 FPSOs with potential and ambition to grow. By leveraging four decades of offshore operations and project execution, the Company creates tailored offshore energy solutions for evolving markets world-wide. BW Offshore has around 2,000 employees and is publicly listed on the Oslo Stock Exchange.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange release was published by Eric Stousland, Associate Corporate Finance, on April 22, 2022 at 07:30 CET.