BW Energy: Q3 2023 trading and financial update

Q3 2023 trading and financial update 

BW Energy, as the operator of the Dussafu Marine licence in Gabon and the Golfinho cluster offshore Brazil, provides an update on its operations and development. The Company will publish financial figures for the third quarter of 2023 on Thursday, 16 November 2023. 

Gross production from the operated assets was 27,400 barrels of oil per day in the third quarter 2023. This included a full quarter of production from the Tortue and Hibiscus fields in the Dussafu licence (73.5% working interest) and production from the Golfinho field after assuming 100% ownership on 28 August.   


Gross production from the Dussafu licence averaged approximately 23,200 barrels of oil per day in the quarter, amounting to a total gross production of approximately 2.14 million barrels of oil for the period. Production was positively impacted by first oil from two additional Hibiscus wells during the quarter and start-up of the additional gas lift compressor on the FPSO BW Adolo. BW Energy completed one lifting in the third quarter at a price of USD 79 per barrel. Production costs (excluding royalties) for the period was approximately US 28 per barrel. The reduction, compared to the previous quarter, reflects mainly the increased production. 

BW Energy’s share of gross production was approximately 1.57 million barrels of oil, an increase of over 50% from the prior quarter. The net sold volume, which is the basis for revenue recognition in the financial statement, was approximately 1 million barrels including 32,500 barrels of Domestic Market Obligation (DMO) deliveries with an under-lift position of 116,000 barrels at the end of the period. 


Gross production from the Golfinho field averaged approximately 11,200 barrels of oil per day from the period 28 August to 30 September, amounting to a total production of 381.700 barrels in the period. There were no liftings in the quarter. The first Golfinho lifting of about 500,000 barrels of oil Is expected to occur in November. Production cost (excluding royalties) averaged USD 48 per barrel for the period. 


BW Energy had a cash balance of USD 197.6 million on 30 September 2023, compared to USD 233 million on 30 June 2023. The decrease is primarily due to ongoing development of Hibiscus Ruche and the Golfinho closing, offset by, draw-down on the USD 80 million Golfinho prepayment facility. The Company had a total drawn debt balance of USD 380 million as of 30 September 2023 including the prepayment facility.  

At the start of the period, the Company had commodity price hedges for a remaining total volume of approximately 1.56 million barrels for 2023, 2024 and 2025, of which approximately 46% was for 2023. These were a combination of swaps and options that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised crude oil hedge losses in the amount of USD 9.1 million for the third quarter of which approximately USD 0.3 million were realised. 

In July and September, the Company safely commenced production from the third and fourth well, respectively, of the Hibiscus / Ruche Phase 1 development. Challenges with the ESP (electronical submersible pump) on the DHIBM-3H and -4H wells temporarily impacted production. The ESPs were re-started in mid-October and the Company is working to stabilise production from both wells. The current total Dussafu gross production, with all the Tortue and Hibiscus wells in operation, is approximately 35,000 barrels of oil per day. 

At the Ruche field, drilling- and completion activities on the DRM-3H production well was temporarily suspended pending an alternative final casing design after encountering oil in the Gamba reservoir. The Company expects to return to complete this well later in the drilling campaign when additional casing material is received.  

To maximize the use of the contracted drilling rig, the Dussafu partners have initiated drilling of the Hibiscus South exploration prospect (DHBSM-1), located about 5 kilometers southwest of the BW MaBoMo production platform. If DHBSM-1 contains commercial volumes, the plan is to return to the well and complete it as a production well in early 2024. The ongoing Hibiscus / Ruche drilling campaign has the potential to bring total oil production on the Dussafu license up to approximately 40,000 barrels per day gross when all wells are completed and on-stream. 

For further information, please contact

Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76 

[email protected] 

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 Company’s assets are 73.5% of the producing Dussafu Marine licence offshore Gabon, 100% interest in the Golfinho and Camarupim fields, a 76.5% interest in the BM-ES-23 block in, a 95% interest in the Maromba field in Brazil and a 95% interest in the Kudu field in Namibia, all operated by BW Energy. Total net 2P+2C reserves and resources were 546 million barrels of oil equivalents at the start of 2023, when including the Golfinho Clusters. 

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