BW Energy has formalised the conversion of a short-term lease agreement into a long-term project lease for the BW Maromba B platform, a Super Gorilla class jack-up rig. The deal was signed with Minsheng Financial Leasing Co. Ltd. (MSFL) and includes the rig purchase and all associated costs required to prepare the unit for drilling and production.
The agreement represents a significant portion of the previously announced Maromba project capital expenditure, amounting to $274mn. The lease is structured for a ten-year term and will only commence once the first oil is produced, with no payments required before that date. The platform will operate under a fixed daily rate of $120,500, ensuring cost predictability throughout the lease duration.
A financing structure tailored for the development phase
The company stated that the transaction strengthens its strategy of repurposing existing production assets to optimise costs on greenfield projects. The unit, which recently completed drilling services in Australia, is currently en route from Singapore to Dubai, where it will undergo conversion at a shipyard. The work will transform the rig into a fully integrated drilling and production platform.
Thomas Young, Chief Financial Officer of BW Energy, stated that the agreement reflects the strength of the partnership between the two companies. He added that the lease structure provides full investment coverage for the platform and offers an efficient financing solution for the field’s development.
Progressive deployment towards Brazil’s Maromba field
Following refurbishment in Dubai, the unit will be mobilised to Brazil, where it will conduct drilling and completion activities under a phased development plan for the Maromba field. Located offshore Brazil, the field is central to BW Energy’s expansion strategy in Latin America.
The Maromba development is based on a modular approach, with successive phases of production deployment. The company aims to reduce lead times and costs by reusing oil and gas infrastructure, amid ongoing volatility in oilfield services markets.
