BW Energy Signs USD 150 million sale & leaseback for MaBoMo production facility
Source: www.gulfoilandgas.com 4/30/2024, Location: Africa
BW Energy is pleased to announce the execution of a sale and leaseback agreement
with a Minsheng Financial Leasing Co entity (MSFL) for the MaBoMo production
facility on the Dussafu Licence offshore Gabon. The agreement will provide USD
150 million of gross sales proceeds under a ten-year lease term with an option
to repurchase the unit from the end of year seven.
The transaction frees up net USD 110 million of liquidity to BW Energy, in line
with the working interest in the licence. The proceeds will be used to finance
the execution of BW Energy's growth strategy including the continuing
development projects in Gabon.
"We are very pleased to have executed the lease financing with MSFL. It
represents a new source of funding at an attractive capital cost and supports
execution of our strategy for long-term value-creation," said Knut R. Sæthre the
CFO of BW Energy.