BW Energy: Q1 2024 trading update

30 April 2024 – 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 first quarter of 2024 on Friday, 24 May 2024.

Net production to BW Energy from the operated assets was 2.48 million barrels of oil in the first quarter of 2024. This includes production from the Tortue, Hibiscus and Hibiscus South fields in the Dussafu licence (73.5% working interest) and production from the Golfinho field (100% working interest).


Net production from the Dussafu licence averaged 18,260 barrels of oil per day in the quarter, amounting to a net production to BW Energy of 1.66 million barrels of oil for the period. Production remained impacted by the electrical issues affecting the ESPs (electrical submersible pumps) on the Hibiscus field, as one well remained offline. BW Energy completed two liftings in the quarter, both in March of approximately 1.4 million barrels in total net at an average realised price of USD 83 per barrel. Production costs (excluding royalties) for the period was approximately USD 23 per barrel. This compares with Q4 production costs of USD 28 per barrel reflecting improved operational efficiency and production.

The net sold volume, which is the basis for revenue recognition in the financial statement, was approximately 1.7 million barrels including 97,500 barrels of DMO deliveries and 203,800 barrels state profit oil with an over-lift position of 167,800 barrels at the end of the period.

On 8 March, production started from the DHBSM-1H well in the Hibiscus South field five months after the initial discovery in November 2023. Production performance from the well has been in line with expectations.

Drilling of the DRM-3H well in the Ruche field has been completed with production start pending delivery of a new conventional ESP (electrical submersible pump). This is expected during the second quarter. The well was drilled as a horizontal well from the MaBoMo production facility to a total depth of 5,795 metres into Gamba sandstone reservoir. The well is located approximately 3.7 kilometres east of the MaBoMo production platform.

Following completion, the Borr Norve jackup has commenced drilling operations on an additional pilot well, DHBSM-2P, to test the northern part of the recently discovered Hibiscus South field where the DHBSM-1H production well was recently put on production. If the DHBSM-2P pilot well is successful, a production well is planned.

Separately, in May, the FPSO BW Adolo will undergo annual scheduled maintenance, resulting in a planned shutdown for approximately three weeks.


Net production from the Golfinho field averaged 9,030 barrels of oil per day in the first quarter, amounting to a total production of 822,500 barrels in the period. One lifting was carried out in February of 490,000 barrels at a realised price of USD 82 per barrel. Remaining inventory was approximately 657,900 barrels at the end of the period. Production cost (excluding royalties) averaged USD 48 per barrel. This compares with Q4 production costs of USD 44 per barrel, mainly reflecting lower production.


During the quarter, the Company extended and increased the Golfinho prepayment facility to USD 120 million from originally USD 80 million. The facility was fully drawn at the end of the period.

The Company has also executed a sale and leaseback agreement with a Minsheng Financial Leasing Co entity for the MaBoMo production facility. 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, which will be used to finance the execution of the growth strategy including the continuing development projects in Gabon.

BW Energy had a cash balance of approximately USD 150 million on 31 March 2024, compared to USD 194 million on 31 December 2023. The decrease reflects the net impact from oil sold in the period, drawdown on the expanded prepayment facility and investments, primarily related the ongoing Hibiscus Ruche field development. The Company had a total drawn debt balance of USD 412.8 million as of 31 March 2024 including the Golfinho prepayment facility.

The company expects to recognise a net loss of USD 3.3 million in the first quarter related to the hedging program, of which USD 3.8 million is unrealised.

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, 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 580 million barrels of oil equivalent at the start of 2024.