Skip to content

BW Energy reports Q1 2024 EBITDA of USD 109.7 million

Read Time: 3 mins

BW Energy, the operator of the Dussafu Marin licence in Gabon and the Golfinho cluster offshore Brazil, reported an EBITDA of USD 109.7 million for the first quarter of 2024, down from USD 133.4 million in the previous quarter. The decrease was primarily attributed to lower oil sales during the period.

Net production from BW Energy’s operated assets reached approximately 27,300 barrels of oil per day in Q1, marking a slight increase from the prior quarter. This includes output from the Tortue, Hibiscus, and Hibiscus South fields within the Dussafu licence (73.5 percent working interest) and the Golfinho field (100 percent working interest), following BW Energy’s acquisition in late August 2023.

Carl K. Arnet, CEO of BW Energy, commented, “BW Energy continues to progress the Hibiscus/Ruche drilling program, optimising available rig time to increase production and reserves through low-cost, low-risk development activity and efficient ESP replacements once equipment becomes available. In Brazil, the Golfinho field is producing in line with expectations as we prepare for the planned infill drilling campaign, and in Namibia, the potential of the Orange Basin and our Kudu asset is reaffirmed by another major new oil discovery.”

BW Energy completed two liftings in Q1 at an average realised price of USD 83 per barrel, resulting in a share of gross production of approximately 1.66 million barrels of oil. The net sold volume, the basis for revenue recognition, was around 1.7 million barrels, including 97,500 barrels of DMO deliveries and 203,800 barrels of state profit oil, with an over-lift position of 167,800 barrels at the end of the period. Proceeds of approximately USD 50 million from the second lifting in March were received in April 2024.

Net production from the Dussafu licence averaged 18,260 bopd, impacted by previously reported electrical issues affecting the ESPs on the Hibiscus field. First quarter production costs (excluding royalties) were 17 percent lower than the previous quarter at approximately USD 23 per barrel, reflecting improved operational efficiency.

In March, production commenced from the DHBSM-1H well in the Hibiscus South field, only five months after its initial discovery in November 2023. The company continues to address the electrical integrity issues affecting the ESPs, with the DHIBM-6H well currently producing on natural flow, while the DHIBM-3H, DHIBM-4H, and DHBSM-1H wells are producing on ESP. The diagnosis, repair, and replacement of the ESPs are well underway.

Scheduled maintenance for the FPSO BW Adolo is planned for May and June, resulting in a three-week shutdown.

Net production from the Golfinho field averaged 9,030 bopd in Q1, totalling 822,500 barrels for the period. One lifting of 490,000 barrels was completed in February at a realised price of USD 82 per barrel. Remaining inventory at the end of the period was approximately 657,900 barrels. Production costs (excluding royalties) averaged USD 48 per barrel, up from USD 44 per barrel in Q4, mainly due to lower production volumes.

BW Energy’s ongoing development activities in both the Dussafu and Golfinho fields underscore the company’s commitment to enhancing production capabilities and operational efficiency, despite the current challenges in oil sales and production costs.

For more information visit www.bwenergy.no