BW Energy: Q4 2021 trading and financial update

BW Energy today provides an update on the operations and development of the Dussafu Marin license in Gabon. The Company will publish financial figures for the fourth quarter and the annual report for 2021 on Thursday, 24 February 2022.

Gross production from the Tortue field averaged approximately 12,250 barrels of oil per day in the fourth quarter of 2021, amounting to a total gross production of approximately 1.1 million barrels of oil for the period. The increase in production compared to the third quarter of 2021 was mainly due to the start of production from the two new Tortue phase-2 wells. The previously communicated shortage of gas lifting capacity continued to impact operations during the quarter, with stable production from four of the six Tortue wells.

BW Energy completed two liftings in the quarter and realised an average price of USD 79 per barrel. Production cost (excluding royalties) was approximately USD 27 per barrel. The overall production cost includes approximately USD 1.0 million of costs related to the continued handling of the COVID-19 pandemic in the period.

BW Energy’s share of gross production was approximately 830,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 1,170,000 barrels including 130,000 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an over-lift position of 107,000 barrels at the end of the period.

BW Energy had a cash balance of USD 150 million at 31 December 2021, compared to USD 170 million at 30 September 2021. The decrease was mainly due to investments related to the Hibiscus/Ruche project activities. The payment for the second lifting, which was completed in late December, was not received by year-end.

In late January, BW Adolo commenced a 12-day planned annual maintenance shutdown, which will impact production in the first quarter of 2022. As part of this shutdown, the company is exploring interim measures to improve gas lift capacity until the installation of a permanent compressor, which is expected in the fourth quarter 2022.

BW Energy has scheduled a webcast for 24 February 2022 where the company will provide a comprehensive presentation of operations and ongoing development projects.

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