BW Energy Inks Long-Term Lease for Maromba Drilling Platform

(Credit: BW Energy)

BW Energy has signed a long-term lease agreement for the Maromba drilling and wellhead platform, converting a short-term lease for the Super Gorilla class jack-up rig BW MAROMBA B into a project lease with Minsheng Financial Leasing (MSFL).

The new agreement covers the rig purchase and all costs required to bring the MAROMBA B unit to drilling and production readiness, BW Energy said.

The lease represents $274 million of the previously communicated capital expenditure for the Maromba project and provides a lease financing structure covering the development phase, followed by a ten-year lease term.

The lease will start upon first oil from the Maromba development, with no payments due prior to that milestone. It carries a fixed daily rate of $120,500, giving cost predictability over the duration of the lease.

The rig is currently en route from Singapore to Dubai and is expected to arrive before year-end. At a yard in Dubai, it will be refurbished and converted into a fully integrated drilling and production platform.

Following completion of the upgrade program, the unit will be mobilized to Brazil, where it will begin drilling and completion work under the phased development plan for the Maromba field.

“We are pleased to establish an attractive lease financing for the full scope of the Maromba wellhead platform investment, building on our strong relationship with MSFL.
This agreement further highlights our ability to consistently leverage repurposed production infrastructure to enable cost-efficient greenfield developments,” said Thomas Young, chief financial officer of BW Energy.