BW Energy Releases Fourth Quarter and Full Year Results 2021


  • Q4 EBITDA of USD 58.8 million and net profit of USD 38.9 million
  • Q4 gross production of 1.13 million barrels with 0.83 million net the Company
  • Completed two liftings of 1.17 million barrels (net BWE) at a price of USD ~79 per barrel
  • Maintained a strong balance sheet with no debt and cash position of USD 150 million
  • Successful completion of Tortue Phase 2 with final two wells on stream in October
  • Currently five wells in operation, one supported by interim nitrogen gas lift
  • Hibiscus/Ruche development activities on track with first oil planned in late Q4 2022
  • Completed acquisition of semi-submersible rig for the Kudu development in Namibia
  • Full-year EBITDA of USD 147 million and net profit of USD 52 million

EBITDA for the fourth quarter of 2021 was USD 58.8 million, up from USD 8.3 million in the third quarter of 2021, due to two liftings to the Company in the quarter compared to zero liftings in the third quarter. One lifting to BW Energy is scheduled in the first quarter of 2022.

“The combination of increased production from the final two Tortue Phase 2 wells and rising energy prices led to a strong fourth quarter and provides a positive backdrop going into 2022. This will be an active year for BW Energy with the Hibiscus / Ruche development on track for first oil late in the year and a successive increase to production volumes as the drilling program continues into 2023. We will also progress the Maromba development in Brazil towards final investment decision and seek a long-term solution to unlock the Kudu gas-to-power project in Namibia,” said Carl K. Arnet, the CEO of BW Energy.

BW Energy completed two liftings in the quarter and realised an average price of USD 79 per barrel. BW Energy’s share of gross production was approximately 830,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 1,170,000 barrels including 130,000 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an over-lift position of 107,000 barrels at the end of the period.

Gross production from the Tortue field averaged approximately 12,250 barrels of oil per day in the fourth quarter of 2021, amounting to a total gross production of approximately 1.1 million barrels of oil for the period. The increase in production compared to the third quarter of 2021 was mainly due to the start of production from the two new Tortue Phase-2 wells in October. The Phase 2 development was completed with zero Health, Safety, Security & Environment (HSSE) incidents and USD 45 million below budget with USD 230 million invested. The previously communicated shortage of gas lifting capacity continued to impact operations during the quarter, with stable production from four of the six Tortue wells.

Fourth quarter production cost (excluding royalties) was approximately USD 27 per barrel. The overall production cost includes approximately USD 1.0 million of costs related to the continued handling of the COVID-19 pandemic in the period.

Full-year 2021 production averaged approximately 11,300 barrels of oil per day (gross), or approximately 4.1 million barrels of oil. Full-year EBITDA was USD 147.2 million.

Cash balance was USD 150 million at 31 December 2021, compared to USD 170 million at 30 September 2021. The decrease was mainly due to investments related to the Hibiscus / Ruche project activities. The payment for the second lifting, which was completed in late December, was not received by year-end.

Total Dussafu production for 2022 is projected to be between 4.2 to 5.2 million barrels gross, based on first oil from the Hibiscus / Ruche development late in the fourth quarter. Full-year production cost (excluding royalties) is expected at approximately USD 26 per barrel. In early February, BW Adolo completed a 12-day planned annual maintenance shutdown, which impacts production in the first quarter of 2022. As part of this shutdown, the company improved the nitrogen lift capacity as an interim measure to well performance until the installation of a permanent compressor, which is expected in the fourth quarter 2022.

The Company has entered into commodity price hedges for a total volume of 1.5 million barrels for 2022 and 2023, of which 57% is for 2022. These are a combination of swaps and zero-cost collars, and will assist future funding for ongoing development projects.

The year-end reserve update assessed 2C+2P reserves of 101.7 million barrels net to the Company in the Dussafu license, reflecting adjustment for gross annual production of 4.1 million barrels partly offset by a reserve revision. This includes the 2019 Hibiscus discovery with 2P gross recoverable reserves of 46.1 million barrels which combined with the previous Ruche and Ruche Northeast discoveries provide a solid foundation for the current Hibiscus / Ruche development. Project execution is on track with the Hibiscus Alpha conversion progressing according plan and budget and a first oil-target in late 2022.

In October, the Company was provisionally awarded operatorship of two blocks in the 12th Offshore Licensing Round in Gabon. The award is subject to finalising the production sharing contracts (PSC) with the Direction Generale des Hydrocarbures (DGH) in Gabon. The blocks G12-13 and H12-13 are adjacent to BW Energy`s Dussafu licence. They will be held by a consortium with BW Energy as operator (37.5%) and VAALCO Energy (37.5%) and Panoro Energy (25%) as non-operating joint venture partners.

The Maromba project continues to progress towards the environmental approval with focus on optimisation of the field development with respect to investment, operational costs and schedule. The Field Development Plan was approved by the regulator (ANP) in August 2020 and final investment decision is expected in 2022 with first oil planned in 2025.

In July BW Energy completed the farm-in of a 95% working interest in the Kudu gas field offshore Namibia. The Company has since progressed a significantly revised development plan for the field development and gas-to-power project based on repurposing a semi-submersible drilling rig as a Floating Production Unit. The rig was acquired in October 2021 for USD 14 million. Repurposing will enable optimisation of the project timeline and significantly reduce capital investments compared to previous development concepts. Reusing existing energy infrastructure will also reduce the project’s environmental footprint. The timing of the final project sanctioning is subject to realising a project financing solution for the Kudu gas to power project.

BW Energy prioritises safety first with zero harm as an overriding objective for people and environment. The Company is substantially reducing the carbon footprint by developing discovered oil and gas resources through large-scale repurposing of existing production infrastructure.

Several key macro-economic drivers developed positively through the course of 2021 as societies started to resume more normalised levels of activity supported by vaccinations and the new strains of COVID-19 virus leading to less severe infections. Disciplined OPEC production cuts supported the oil price and oil energy demand is recovering with increased global economic activity.

BW Energy expects to generate significant positive cash flow at current oil price levels. With a solid capital base following the 2020 IPO and the January 2021 capital raise, and access to a number of accretive investment projects, the Company expects to create significant value for its stakeholders going forward.

BW Energy remains focused on realising long-term value creation via its phased development strategy targeting investments in high-return assets. The flexible investment strategy has proven robust for a range of market scenarios and positions the Company to address both short- and long-term opportunities to drive cash flows and earnings.

BW Energy today published its annual report and a separate sustainability report for the financial year ended 31 December 2021. BW Energy has also today published the Board-approved report on payments to governments and the annual statement of reserves for the financial year 2021. Please find all reports and the fourth-quarter earnings presentation attached. The reports are also available at

About BW Energy:

BW Energy is a growth E&P company with a differentiated strategy targeting proven offshore oil and gas reservoirs through low risk phased developments. The Company has access to existing production facilities to reduce time to first oil and cashflow with lower investments than traditional offshore developments. The main assets are 73.5% of the producing Dussafu Marine Permit offshore Gabon and a 95% interest in the Maromba field in Brazil, both operated by the Company. Total net 2P+2C reserves were 241 million barrels at the start of 2022.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.