BW Energy has provided 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 2022 on Tuesday, 28 February 2022.
Gross production from the Tortue field averaged approx. 9,600 barrels of oil per day in the fourth quarter of 2022, amounting to a total gross production of approx. 883,000 barrels of oil for the period. Production was impacted by planned field development and modification activities. Full-year production was 10,600 barrels of oil per day equalling a total gross production of approx. 3.9 million barrels of oil.
BW Energy completed one lifting in the fourth quarter at a price of USD 73 per barrel reflecting a lower realised oil price compared to Dated Brent due to temporary oversupply of Russian crude in the market and high transportation costs. Production cost (excluding royalties) for the period was approx. USD 40 per barrel due to the lower production. Average production cost for the year 2022 was USD 36 per barrel.
BW Energy’s share of gross production was approx. 649,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 745,000 barrels including 65,000 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an under-lift position of 76,000 barrels at the end of the period.
BW Energy had a cash balance of USD 210 million on 31 December 2022, compared to USD 186 million at 30 September 2022. The increase is due to the payment received for the December lifting and a drawdown on the Company’s reserves-based lending (RBL) facility, offset by continued investments in the Hibiscus / Ruche development project.
At the start of the period, the Company had commodity price hedges for a remaining total volume of 0.8 million barrels for 2022 and 2023, of which approx. 15% was for 2022. These were a combination of swaps and zero-cost collars that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised crude oil hedge losses in the amount of USD 5.2 million for the fourth quarter, of which USD 4.7 million were unrealised.
The drilling campaign at the Hibiscus field is progressing according to plan and in line with the schedule for first oil from the Hibiscus / Ruche development towards the end of the first quarter of 2023.
Source: BW Energy
