BW Energy, as the operator of the Dussafu Marin license in Gabon, has provided an update on its operations and development
The Company will publish financial figures for the second quarter and first half year of 2023 on 23 August.
Gross production from the Tortue field averaged approximately 15,200 bopd in the second quarter of 2023, amounting to a total gross production of approximately 1.4 mn barrels of oil for the period. Production was positively impacted by first oil from the two initial Hibiscus / Ruche wells during the quarter and higher uptime on the BW Adolo after maintenance and development activities in the previous quarter.
BW Energy completed one lifting in the second quarter at a price of US$75 per barrel. Production costs (excluding royalties) for the period was approximately US$35 per barrel. The reduction compared to the previous quarter reflects the increased production.
BW Energy’s share of gross production was approximately 1.0 mn barrels of oil, more than double of prior quarter. The net sold volume, which is the basis for revenue recognition in the financial statement, was approximately 1.0 mn barrels including 65,000 barrels of Domestic Market Obligation (DMO) deliveries with an over-lift position of 312,000 barrels at the end of the period.
BW Energy had a cash balance of US$233mn on 30 June, compared to US$166mn on 31 March. The increase is primarily due to the payment received for the May lifting and drawdown on the reserves-based lending (RBL) facility. The Company had a total drawn balance of US$300mn as of 30 June after successful completion of US$100mn accordion committed by three additional banks.
At the start of the period, the Company had commodity price hedges for a remaining total volume of approximately 2 mn barrels for 2023 and 2024, of which approximately 70% was for 2023. These were a combination of swaps and options that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised crude oil hedge gains in the amount of US$3.4mn for the second quarter of which US$0.7mn was realised.
In early April, the Company safely achieved first oil from the Hibiscus / Ruche Phase 1 development. This was followed by successful completion and production from two additional wells through June and July. Three Hibiscus wells in combination with commissioning of the second Gas Lift Compressor (GLC) have resulted in total gross production from the field reaching up to 30,000 barrels per day in late July. The Hibiscus / Ruche Phase 1 drilling campaign targets four Hibiscus Gamba and two Ruche Gamba wells which are expected to bring total oil production on the Dussafu Marin Permit up to approximately 40,000 bopd on a gross basis when all wells are completed and onstream. The wells are drilled by the Borr Norve jackup rig.
