GABON: BW Energy Provides Q3 2022 trading and financial update

BW Energy today has provided an update on the operations and development of the Dussafu Marin license in Gabon. The Company will publish financial figures for the third quarter of 2022 on Thursday, 17 November. Gross production from the Tortue field averaged approximately 10,400 barrels of oil per day in the third quarter of 2022, amounting to a total gross production of approximately 960,000 barrels of oil for the period in line with expectations.

BW Energy completed one lifting in the quarter at a price of USD 101 per barrel. Production cost (excluding royalties) was approximately USD 36 per barrel. The overall production cost includes approximately USD 1 million related handling of the COVID-19 pandemic in the period.

BW Energy’s share of gross production was approximately 700,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 715,000 barrels including 32,500 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an under-lift position of 185,000 barrels at the end of the period.

BW Energy had a cash balance of USD 186 million at 30 September 2022, compared to USD 123 million at 30 June 2022. The increase is due to the payment received for the August lifting and a drawdown on the Company’s reserve-based lending (RBL) facility, partly offset by continued investments in the Hibiscus / Ruche development project.

At the start of the period, the Company had commodity price hedges for a remaining total volume of one million barrels for 2022 and 2023, of which 37% is for 2022. These were a combination of swaps and zerocost collars that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised realised crude oil hedge losses in the amount of USD 2.9 million and unrealised gains in the amount of USD 14.9 million for the third quarter.

In late September, the BW MaBoMo offshore production facility arrived in Gabon on schedule. The production facility has since been installed on site and preparations are underway for future drilling operations and for the tie-in of the export pipeline to the BW Adolo FPSO and the BW MaBoMo. Twenty kilometres of the subsea pipeline has now been installed, with final connections planned for year-end.

Separately, the drilling rig is on schedule to spud the first production well planned in January. This in in line with the plan for first oil from the Hibiscus / Ruche development towards the end of the first quarter of 2023.