HIGHLIGHTS

• Q3 EBITDA of USD 130 million and net profit of USD 48.0 million 
• Q3 gross production of 2.9 mmbbls with 2.4 mmbbls net to BW Energy 
• Record operational cash-flow of USD 144.9 million in the quarter 
• Three liftings of 2.5 mmbbls (net BWE) at average realised price of USD ~82/bbl  
• Highest quarterly production since inception from the Dussafu licence  
• Currently producing over 40,000 bbls/day gross at Dussafu 
• On track for completing ESP change-outs in Gabon by year-end with three wells remaining, including DRM-3H 
• Final agreements for Niosi Marin and Guduma Marin Exploration Blocks Offshore Gabon 
• Maintained a strong balance sheet with cash position of USD 209 million  

BW Energy, operator of the Dussafu Marin licence in Gabon and the Golfinho cluster offshore Brazil, reported EBITDA of USD 130 million for the third quarter of 2024. This was up from USD 75.9 million in the previous quarter, due to higher oil sales following record quarterly production in Gabon. The net production from operated assets was 25,570 bbls/day. This includes the Tortue, Hibiscus, and Hibiscus South fields in the Dussafu licence (73.5% working interest or “WI”) and the Golfinho field (100% WI).  

“BW Energy delivers record quarterly production and cash-flow from operation in the third quarter, supporting attractive appraisal, development, and field optimisation programs across our growing asset base in Gabon, Brazil, and Namibia,” said Carl K. Arnet, the CEO of BW Energy. "We are also pleased to meet our Dussafu production target of 40,000 barrels a day gross, well before year-end, and following new low-cost, low-risk development wells and successful ESP replacements. The ongoing drilling campaign has expanded our asset and reserves base, and with further wells to complete and work-over, we are confident that we can maintain production at FPSO BW Adolo capacity for longer.” 
 
Dussafu 

BW Energy completed two liftings in the third quarter at an average realised price of USD 82/bbl. BW Energy’s net production was approximately 1.9 mmbbls of oil. The net sold volume, which is the basis for revenue recognition in the financial statements, was approximately 2.0 mmbbls including 195,000 bbls of DMO deliveries and 232,800 bbls of state profit oil with an under-lift position of 391,500 bbls at period-end.  

Net production from the Dussafu licence averaged 20,150 bbls/day, supported by the ESPs (electrical submersible pumps) on wells producing to the MaBoMo facility. Third quarter production cost (excluding royalties) decreased to USD 20.5/bbl from USD 29/bbl in the second quarter, which was impacted by scheduled facility maintenance. Production cost was in line with the year-end target level and reflects improved operational efficiency and increased production.  

In July, production started from the DHBSM-2H well on Hibiscus South, in August the DHIBM-3H workover was completed, and in early October DHIBM-7H started production, all with conventional ESPs. In late September, the DHBSM-1H ESP failed as the last of the defective generation, with change-out completed and production restarted mid-October. Workover of DHIBM-4H was completed in early November, leaving three remaining wells scheduled for conventional ESP change-out before year-end.  

Golfinho 

Net production from the Golfinho field averaged 5,400 bbls/day equivalent to a total production of 498,900 bbls in the quarter. Production was impacted by a planned maintenance shutdown on the FPSO Cidade de Vitória. Production availability is set to improve in the fourth quarter following maintenance completion on one gas- lift compressor.  

One lifting was carried out in August of 487,000 bbls at a realised price of USD 81.7/bbl. Remaining inventory was approximately 340,700 bbls at the end of the period. Production cost (excluding royalties) averaged USD 63.3/bbl barrel. This compares with production costs of USD 48/bbl in the second quarter, primarily due to lower production. 

Development plans

BW Energy is in process of completing the DHIBM-5H well workover, bringing the number of Hibiscus / Ruche Phase 1 producing wells to seven. Following completing of the remaining two well workovers and ESP change-outs, the Company will appraise the Bourdon prospect, targeting potential gross recoverable reserves of ~30 million barrels in Gamba and Dentale formations. 

At end-October, BW Energy signed production sharing contracts (PSCs) for the Niosi Marin and Guduma Marin (formerly named G12-13 and H12-13) exploration blocks which are adjacent to the Dussafu licence. BW Energy holds 37.5% WI in both blocks, and is the operator of the blocks, which significantly expands the resource base for infrastructure-led exploration. The PSCs have an eight-year exploration period with option to extend for two more years. The partners have committed to drilling one well on Niosi Marin and intend to carry out a 3D seismic acquisition campaign. 

In Brazil, the focus is on optimising production from the Golfinho field, including stabilising FPSO performance and selected well workovers. Also in Brazil, planning of the Maromba development, targeting low-risk barrels in an oil rich area with multiple producing assets, progressed towards planned FID in early 2025. The concept is based on the sustainable re-use of an FPSO and a jack-up with drilling capacity and dry trees, providing an efficient development with short pay-back time. Initial oil production from Maromba is expected at around 50,000 bbls/day. The BW Maromba FPSO is at the COSCO yard in China in preparation for upgrades. 

In Namibia, BW Energy has sanctioned the drilling of an appraisal well targeting the Kharas Prospect north-west on the Kudu formation. Long-lead items have been secured and the Company is reviewing offers for rig capacity.  There is a close dialogue with other operators in the Orange Basin on exploring common use available resources. Development planning and concept selection for the Kudu gas-to-power project also continued with relevant stakeholders.  

KeyFacts Energy: BW Energy Gabon country profile