At BW Energy, securing strong and flexible financing is a core part of how we support growth and manage risk across our developments. Our established facilities provide resilience and reliable backing for our strategic portfolio. Through long-standing relationships with global lenders – including partners in shipping, Asia and the Middle East – we continue to access competitive and well-structured funding. This disciplined approach complements our operational capabilities and strengthens our financial position.
Key financial agreements
Established: August 2022 (amended and increased March 2025)
Initial commitment: USD 400 million
Accordion option: Additional USD 100 million
Outstanding at 31 December 2024 (prior facility): USD 250 million
Interest rate: 3-month SOFR + 0.25% + applicable margin
Maturity: 1 October 2030
Security: Senior secured long-term debt facility
Facility agent: Mauritius Commercial Bank
Syndicate participants: SCB, Rand Merchant Bank, Nedbank Group, ABSA Group and Shell (offtaker)
Issued: June 2024
Amount: USD 100 million
Coupon: 10% per annum
Tenor / Maturity: 18 June 2029
Listing: Euronext Oslo Børs
Interest payments: Semi-annual
Established: April 2024
Gross proceeds: USD 150 million
Initial lease term: 84 months (7 years)
Repurchase option: USD 45 million (at end of lease term)
Interest rate: 3-month CME Term SOFR + 3.75%
Lease liability exposure: USD 142.5 million contractual undiscounted payments
Established: September 2025
Facility size: USD 365 million
Type: Export credit-backed project finance loan
Purpose: Refurbishment and redeployment of the Maromba FPSO
Lenders: CEXIM, ADCB, Bank ABC, NBF, Commercial Bank of Dubai
Interest rate: SOFR + 2.8% margin
Structure: Progressive drawdown during construction
Amortisation period: 6.5 years after project completion
Established: December 2025
Financing structure: Long-term lease agreement
Lessor: Minsheng Financial Leasing Co. Ltd. (MSFL)
Scope covered: Rig purchase and WHP conversion
Financed amount: USD 274 million
Lease start: Upon first oil
Lease term: 10 years
Daily lease rate: USD 120,500
Payments prior to first oil: None
Established: July 2023
Facility size: USD 120 million (March 2024)
Outstanding at 31 December 2024: USD 80 million
Interest rate: 3-month SOFR + 4.5%
Repayment method: Allocated crude oil offtake volumes
Established: August 2025
Facility size: USD 250 million
Lender: DNB Bank
Guarantee support: BW Group
Purpose: General corporate and development funding
Tenor: 18 months, bullet maturity
Extension option: Additional 18 months (mutual option)
Interest rate (drawn): Term SOFR + 6% per annum
Commitment fee (undrawn): 0.6% per annum
Hedging
BW Energy derives its revenues from the sale of crude oil produced in Gabon and Brazil. Revenue is and will continue to be exposed to fluctuations in oil prices.
BW Energy continuously evaluates and assesses opportunities for hedging as part of a prudent financial risk management process. BW Energy enter into derivative financial instruments including swaps and options to manage volatility. These derivatives are marked to market with changes in market value recognised in the statement of income. BW Energy does not apply hedge accounting. The below info is from the 2024 annual report and will be updated yearly with each annual report.
Underlying benchmark: Dated Brent
Instruments applied: Swaps and options (including collars and long puts)
Hedging policy target – Year 1: 40% of estimated production (rolling basis)
Hedging policy target – Year 2: 25% of estimated production (rolling basis)
Accounting treatment: Measured at fair value through profit and loss
Hedge accounting: Not applied
Hedged volume at start of 2025: ~5.0 million barrels
Swaps position: ~0.2 million barrels at USD 81 per barrel (weighted average strike)
Long puts/collars position: ~4.8 million barrels at USD 55 per barrel (weighted average strike)