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  • Q3 EBITDA of USD 8.3 million and net loss of USD 10.3 million
  • No liftings to the Company in the quarter with revenue reflecting approximately 195,000 barrels of quarterly DMO deliveries
  • Q3 gross production of 0.8 million barrels
  • Maintained a strong balance sheet with no debt and cash position of USD 170.6 million
  • Successful completion of Tortue Phase 2 at USD 45 million below budget with the hook-up of production wells DTM-6H and DTM-7H in October
  • Two liftings to the Company scheduled in the fourth quarter
  • Hibiscus/Ruche development activities on track
  • Provisional award of operatorship of two blocks in Gabon’s 12th Offshore Licensing Round
  • Acquired semi-submersible rig for repurposing to unlock Kudu development in Namibia

EBITDA for the third quarter of 2021 was USD 8.3 million, down from USD 46.9 million in the second quarter 2021, due to no liftings to the Company in the quarter (as planned) compared to two liftings in the second quarter. Two liftings to BW Energy are scheduled in the fourth quarter.

In October, BW Energy completed the Tortue Phase 2 field development with the hook-up and production start from the final two production wells, DTM-6H and DTM-7H. The Tortue development consists of six production wells, tied back to the FPSO BW Adolo. 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.

"We are delivering on our strategy at Dussafu with the completion of Tortue Phase 2. We are pleased to have executed the project well below our partner approved budget of USD 275 million despite delays caused by the COVID-19 pandemic. The upcoming Hibiscus/Ruche development represents the next major milestone. We are on track to achieve our previously announced saving of approximately USD 100 million on this development. The recent award of operatorship for two new blocks next to the Dussafu licence further strengthens our long-term position and potential offshore Gabon," said Carl K. Arnet, the CEO of BW Energy.

Dussafu production averaged approximately 9,000 barrels of oil per day from four wells, amounting to a total gross production of 0.8 million barrels of oil in the quarter. Third quarter revenue reflected approximately 195,000 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an under- lift position of around 203,000 barrels at the end of the period.

The decrease in production compared to the second quarter of 2021 was mainly due to plant shutdowns and temporary operational issues and the previously communicated shortage of gas lifting capacity impacting well-flows. A nitrogen generation unit installed on BW Adolo has improved the start-up situation for the wells. However, additional gas lift capacity is required to optimise the production and BW Energy has ordered a new, larger gas lift compressor with expected installation in fourth quarter 2022. BW Energy is also exploring interim measures to improve lift capacity until the additional gas lift compressor is commissioned.

“Production from Tortue will be impacted for the remainder of 2021 and until late next year due to the lack of gas lift capacity which has been exacerbated by a combination of supply chain restrictions and delays in offshore work due to the pandemic. However, this does not change our overall expected long-term production or recovery factor from Tortue.“ said Carl K. Arnet.

Production cost (excluding royalties) was approximately USD 36 per barrel, including approximately USD 1.5 million of COVID-19 related costs, due to the lower production in the third quarter. Total Dussafu production for 2021 is projected to be approximately 11,250 barrels per day gross, or approximately 4.1 million barrels in total for the year. Full year production cost (excluding royalties) is expected to be around USD 30 per barrel.

Cash balance was USD 170.6 million at 30 September 2021, compared to USD 216 million at 30 June 2021. The decrease is mainly due to investment activities related to Tortue Phase 2, progress on the Hibiscus/Ruche project and completion of the Dussafu exploration drilling campaign.

The Hibiscus North exploration well (DHBNM-1) in the Dussafu license was drilled to 3,336 meters depth. An oil-bearing reservoir was encountered in the Upper Gamba sandstone and in the deeper Dentale formation. Wireline logging operations and fluid samplings showed lower volumes of hydrocarbons than expected. The preliminary results indicate that the field may be incorporated into future development planning as a possible tie back to the Hibiscus Ruche development.

The 2019 discovery of Hibiscus with 2P gross recoverable reserves of 46.1 million barrels combined with the previous Ruche and Ruche North East discoveries provide a solid foundation for the current Hibiscus/Ruche development. Project execution is on track with the Hibiscus Alpha conversion progressing ahead of plan with placement underway for all major contracts 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 planned by the first quarter of 2022.

BW Energy is progressing on a significantly revised development plan for the Kudu gas field offshore Namibia. The new plan for the gas to power project is based on repurposing the recently acquired semisubmersible drilling rig, “Leo”, as a Floating Production Unit. The rig was acquired for USD 14 million. Repurposing will enable optimisation of the project timeline and significantly reduce capital investments compared to previous development concepts. Re-using 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.

“The acquisition of Leo gives us a clear line of sight for a gas to power project that will provide 250 MW of base power to Namibia at competitive electricity prices. It will replace coal fired power and contribute significantly to the future development of safe, stable and sustainable energy supply in the region,” commented Carl K. Arnet.

In July, BW Energy, via its BW Kudu Ltd. subsidiary, paid USD 4 million to complete farm-in of 95% working interest in the Kudu licence. The National Petroleum Corporation of Namibia (NAMCOR) retains the remaining 5% working interest which will be carried by BW Kudu until first gas.

Please see the attached Q3 Presentation. The earnings tables are available at:

BW Energy will today hold a conference call followed by a Q&A hosted by CEO Carl K. Arnet, CFO Knut R. Sæthre and COO Lin G. Espey at 14:00 CET.

Conference call information:
To dial in to the conference call where the third quarter results and Q&A will be hosted, please dial in to one of the following numbers:

Norway: +47 2396 3688
Singapore: +65 6408 5768
UK: +44 3333 009 262
US: +1 6467 224 903
France: +33 170 750 736

You can also follow the presentation via webcast with supporting slides, available on:  

Please note, that if you follow the webcast via the above URL, you will experience a 30 second delay compared to the main conference call. The web page works best in an updated browser - Chrome is recommended.

For further information, please contact:
Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76

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 FPSOs 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 242 million barrels at the start of 2021.

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