Andreas Sohmen-Pao’s BW Group has teamed up with public company BW Offshore to invest in a Gabon oil field.
New joint-venture company BW Energy will control a 66.67% stake in the Dussafu production sharing contract, with rights secured for a further 25%.
Oslo-listed BW Offshore is directing $32m into the project, a statement said.
Analysts at Arctic Securities note the initiative will allow BW Offshore to redeploy one of its idle FPSOs, with the Azurite the most likely candidate.
Arctic adds BW Offshore investors may be sceptical about adding direct geological risk via the new project.
Shares in the FPSO owner slipped by a little over 2% to NOK 26.90 ($3.10) each at the time of writing on Thursday.
“We view it as positive that BWO is taking action to redeploy their idle FPSOs but increased [geopolitical] risk counterbalance this,” the analysts added.
“They have tried this in the past with the Polvo field in Brazil, which was not well received, but that deal fell apart before closing."
