BW Energy targets 100,000 boepd after Gabon and Brazil investments

BW Energy Limited (OSE:BWE) has taken final investment decision
(FID) on the Bourdon offshore development in Gabon and a new infill
drilling campaign at the Golfinho licence offshore Brazil, as the
company targets production growth above 100,000 barrels of oil
equivalent per day (boepd) by 2028.

The two sanctioned projects contain a combined 68mn barrels of
oil equivalent (boe) in estimated 2P reserves and form part of BW
Energy’s infrastructure-led expansion strategy focused on phased,
lower-risk offshore developments.

“These two projects add highly profitable production in licenses
with proven reserves and multiple growth opportunities,” chief
executive officer Carl K. Arnet said in a statement.

“Through the repurposing of existing energy assets and a phased
approach, BW Energy has optimised the development solutions
supported by low-cost infrastructure-backed financing,” he
added.

“This yields high return-projects, increasing our net production
to above 100 kbopd in 2028 and positioning us to sustain this level
into the next decade.”

The Bourdon Phase 1 project within the Dussafu licence offshore
Gabon contains approximately 25mn boe in gross 2P reserves, almost
entirely crude oil, with first production targeted in the first
quarter of 2028.

The development will use a converted former drilling rig, Akoum
— previously Jasmine Alpha — as a new wellhead platform featuring a
12-slot wellbay.

Initial production will come from three wells, while BW Energy
said nearby structures could contain an additional 200mn barrels of
oil in place supporting future expansion phases.

Net capital expenditure for the Bourdon project is estimated at
$300mn, with around $100mn expected before first oil. BW Energy
said the upfront spending will be supported by a recent
sale-and-leaseback agreement with China’s Minsheng Financial
Leasing.

The company added that a term sheet has already been signed for
a long-term lease expected to cover 100% of the wellhead platform
capex before first production.

BW Energy estimates the project will generate an internal rate
of return (IRR) above 25% at an oil price of $60 per barrel, with
breakeven estimated at around $45 per barrel using a 10% discount
rate.

Partners in the Dussafu licence include BW Energy with a 73.5%
operating stake, Panoro Energy ASA with 17.5% and Gabon Oil Company
holding 9%.

In Brazil, BW Energy approved four new wells tied back to the
Golfinho floating production, storage and offloading (FPSO) vessel,
including three wells within the Golfinho licence and one within
the Camarupim licence.

The Brazil expansion programme contains around 50mn boe in 2P
reserves, comprising roughly 42% oil and 58% gas, with first
production expected by end-2028.

BW Energy said the project is expected to triple output from the
Golfinho area to around 30,000 boepd from 2029 by leveraging
existing offshore and gas export infrastructure.

Net capex for the Brazil campaign is estimated at $450mn,
including $170mn already committed to long-lead equipment, while
the remaining spending retains timing flexibility closer to first
oil.

The company estimates development costs at around $9 per barrel
due to the use of existing infrastructure, while forecasting an IRR
above 50% at $60 oil and breakeven near $40 per barrel.

BW Energy owns and operates production, development and
exploration assets in Gabon, Brazil and Namibia. Total net 2P
reserves exceed 240 million barrels of oil equivalent, with a
further 390 million barrels classified as 2C resources, providing a
strong foundation to organically increase production from around 30
kbopd in 2025 to over 100 kbopd in 2028.

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