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BW Energy: Third quarter 2023 results




  • Q3 EBITDA of USD 49.7 million and net profit of USD 0.5 million 
  • Q3 gross production of 2.49 million barrels with 1.93 million barrels net to BW Energy 
  • Completed one lifting of 950,000 barrels (net BWE) at a price of USD 79 per barrel 
  • Start-up of two additional Hibiscus / Ruche production wells and gas lift compressor  
  • Assumed 100% ownership and operatorship of Golfinho from late August  
  • USD 80 million Golfinho prepayment facility and offtake agreement completed and drawn 
  • Maintained strong balance sheet with cash position of USD 198 million 
  • Substantial oil discovery made in the Hibiscus South prospect (November) 

BW Energy, operator of the Dussafu Marine licence in Gabon and the Golfinho cluster offshore Brazil, reported EBITDA for the third quarter of 2023 of USD 49.7 million, up from USD 39.3 million in the second quarter. Gross production from the operated assets was 27,400 barrels of oil per day in quarter, an increase of 80% compared to the second quarter of 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. 

"We continue to make significant progress on executing our strategy, delivering strong production growth from Dussafu and by becoming owner and operator of material production and cashflow in Brazil, thereby also diversifying and our production and resource base,” said Carl K. Arnet, the CEO of BW Energy. “We have also fast-tracked our appraisal program offshore Gabon, making a substantial oil discovery in the Hibiscus South satellite prospect. This will rapidly be brought into production and provide us with low-cost and low-risk access to high value barrels.” 


BW Energy completed one lifting in the third quarter and realised a price of USD 79 per barrel. 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 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 and start-up of the additional gas lift compressor on the FPSO BW Adolo, partly offset by challenges with the ESPs (electrical submersible pumps) on the DHIBM-3H and -4H wells. Production costs (excluding royalties) for the period was approximately USD 28 per barrel. The decrease from previous quarters reflects increased production.  

While the ESPs were re-started in mid-October, the Company continues to experience challenges impacting production. BW Energy is working closely with the supplier to identify and resolve the issues affecting the ESPs’ electrical system. Also in October, the company completed on lifting of approximately 950,000 barrels to the Company at an average price of about USD 90. The next lifting to BW Energy is planned for end-November.  

For 2023, the Company expects a total production of approximately 6.7 million barrels from the Dussafu licence, reflecting the continued ESP challenges. The annualised average OPEX is expected at USD 30 per barrel. For 2024, the production expectation is in the range of 10 to 12 million barrels due to the ongoing ESP challenges.  

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. Production cost (excluding royalties) averaged USD 48 per barrel for the period. The first Golfinho lifting of about 521,500 barrels of oil was concluded in early November. A second lifting is planned in December. The take-over of FPSO Cidade de Vitória from Saipem is awaiting ANP approval.  

BW Energy had a cash balance of USD 197.6 million on 30 September 2023, compared to USD 233.5 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. 


The ongoing Hibiscus / Ruche Phase 1 drilling campaign comprises eight firm wells. In addition to the four Hibiscus wells drilled to date, the updated plan includes a fifth Hibiscus well, a Hibiscus South development well, finalisation of the Ruche well, and a Bourdon prospect test well. Drilling results to date show a larger Hibiscus resource and a slightly smaller Ruche resource than previously modelled, with management estimates of a net addition of ~10 million barrels oil in place. 

In July and September, production commenced from the third and fourth Hibiscus wells respectively. At the Ruche field, drilling and completion activities on the DRM-3H production well were suspended pending an alternative casing 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. 

Drilling of the Hibiscus South satellite prospect (DHBSM-1) was completed after encountering commercial volumes of oil with approximately 20 meters of pay in an overall hydrocarbon column of 26.5 meters in the Gamba formation. The Company plans to return to the well to complete it as a production well in early 2024. The Hibiscus South structure is a separate accumulation with a deeper oil-water contact than the nearby Hibiscus Field, which increases the Company’s reserve base and provides the opportunity to add one or more additional production well in the current drilling campaign. 

The Hibiscus / Ruche drilling campaign has the potential to bring total oil production on the Dussafu licence up to approximately 40,000 barrels per day gross when all wells are on-stream. In addition to the Hibiscus South Prospect, the Company also plans a prospect test well in Bourdon (Prospect B) under the current rig contract. 

In Brazil, the Company progressed preparations for two planned Golfinho infill wells (GLF-51 oil well and GLF-50 gas well) which are expected to double production in 2026. Also in Brazil, the Maromba development plan progressed with completion of the revised concept expected in the second quarter of 2024. Total oil production from Maromba at peak annual average is expected between 30-40,000 barrels of oil per day. The final investment decision is subject to completion of the project financing. In October, BW Energy paid the first USD 30 million instalment for FPSO Polvo per schedule. The Company will pay the remaining USD 20 million in the second quarter of 2024. 

In Namibia, BW Energy is progressing the revised development plan for the gas-to-power project and analysing data from the 3D survey completed in May. Interpretation of the initial fast-track data has enhanced the depositional model and de-risked potential targets with additional prospects identified, and the Company has decided to start ordering long-lead items for a future exploration program. 


BW Energy prioritises safety first with zero harm as an overriding objective for people and environment. The Company is substantially reducing the carbon footprint by developing discovered oil and gas resources through large-scale repurposing of existing production infrastructure. 

The Company expects oil and gas to remain an important part of the global energy mix in decades to come and remains focused on realising long-term value creation via its phased development strategy and investments in high-return assets. The flexible investment strategy has proven robust for a range of market scenarios and positions the Company to address both short- and long-term opportunities to drive cash flows and earnings. 

Energy prices remain at high levels despite a softening of macro-economic drivers as geopolitical conflicts, global supply change challenges, inflation and high interest rates. Short-term, the focus is on completing the Dussafu drilling program and stabilising production from the Tortue, Hibiscus, Ruche and Hibiscus South fields, and optimising output from the assets in Brazil. Both are providing a substantial increase in oil production and significant value for stakeholders. 


Please see the attached third quarter presentation and earnings tables. 


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 09:00 CET. 

Participants dial in numbers:

Pin code for all countries: 980877

DK: +45 7876 8490
SE: +46 8 1241 0952
NO: +47 2195 6342
UK: +44 203 769 6819
US: +1 646-787-0157
SG: +65-3-1591097
FR: +33-1-81221259

The presentation may also be followed via webcast on:

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


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