BW Energy, the operator of the Dussafu Marine licence in Gabon and the Golfinho cluster offshore Brazil, has provided an update on its operations and development plans. The Company is set to publish its financial figures for the first quarter of 2024 on Friday, 24 May 2024.
In the first quarter of 2024, net production to BW Energy from its operated assets amounted to 2.48 million barrels of oil. This includes production from the Tortue, Hibiscus, and Hibiscus South fields in the Dussafu licence (73.5 percent working interest) and production from the Golfinho field (100 percent working interest).
Net production from the Dussafu licence averaged 18,260 barrels of oil per day, totalling 1.66 million barrels of oil for the period. Production was impacted by electrical issues affecting the ESPs on the Hibiscus field. Two liftings were completed in the quarter, both in March, with production costs (excluding royalties) amounting to approximately USD 23 per barrel.
Production commenced from the DHBSM-1H well in the Hibiscus South field on 8 March, with production performance meeting expectations. The drilling of the DRM-3H well in the Ruche field has been completed, with production start pending the delivery of a new conventional ESP expected during the second quarter.
The FPSO BW Adolo will undergo annual scheduled maintenance in May, resulting in a planned shutdown for approximately three weeks.
In the Golfinho field, net production averaged 9,030 barrels of oil per day, with one lifting carried out in February. Production costs (excluding royalties) averaged USD 48 per barrel.
During the quarter, BW Energy extended and increased the Golfinho prepayment facility to USD 120 million from originally USD 80 million. Additionally, the Company executed a sale and leaseback agreement for the MaBoMo production facility, providing USD 150 million of gross sales proceeds under a ten-year lease term.
BW Energy had a cash balance of approximately USD 150 million on 31 March 2024, compared to USD 194 million on 31 December 2023. The company expects to recognise a net loss of USD 3.3 million in the first quarter related to the hedging program, of which USD 3.8 million is unrealised.
For more information visit www.bw-group.com
