BW Energy: The Maromba Question

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BW Energy has built an unusual upstream business from a heritage in shipping, offshore infrastructure and maritime finance. Its Maromba development in Brazil could transform the company, but at around $1.5 billion it is also enormous relative to BWE’s existing scale and equity value.

In this episode, we look at Maromba’s development history, subsurface and execution risk, the sophisticated financing structure supporting the project, and why good financing does not remove the underlying exposure for shareholders. We also ask whether BWE ultimately needs to retain almost all of Maromba to capture the value it could create.