Floating production unit supplier BW Offshore has pulled out of plans to buy stake in an oil field off the Brazilian coast.
The Norweigian firm announced late last year it was in talks to take almost a third of the field from Brazilian independent oil firm HRT, which in turn had paid BP more than £82million for its 60% interest in the Polvo field.
BW Offshore, which operates the Polvo FPSO on the field, had been looking to take a 30% stake in the 13,000 barrels of oil per day project, which sits around 100km off the coast of Rio de Janeiro.
But today the firm said it had pulled out of the deal.
“Such transaction was subject to due diligence, and regulatory, governmental and board approvals,” BW Offshore said in a statement.
“Upon the expiry of the backstop date under the LOI on 8 April 2014, BW Offshore elected to terminate the aforesaid LOI pursuant to its terms.
“BW Offshore is operating the FPSO Polvo on the Polvo field under a fixed contract until Q3 2015, with options until Q3 2022. BW Offshore and HRT will continue their positive working relationship in operating the field.”