Acquisition of jack-ups to be converted for Dussafu developments and Q3 production update
Subsequently, the Company has acquired two jack-up drilling rigs, the 2003-built sister-units “Atla” and “Balder”, from Borr Drilling Ltd.
“A jack-up conversion will enable us to reduce capital investments by about
The seismic reprocessing carried out by
“This development concept offers tangible financial, schedule and environmental benefits. We have consequently decided to secure a second jack-up at a very attractive price to prepare for the future development of the Dussafu license,” said
Calculations show that redeployment and conversion projects offer 70%-80% reductions to greenhouse-gas emissions compared to new built assets due to reduced steel consumption and shorter yard stays. Further tangible benefits are reduced installation cost as a jack-up can “self-install” after mobilisation to the field and no need for piling into the seabed for stability.
As announced on 16 September, the new development plan is expected to lower the estimated cash-break even oil price for the Hibiscus/Ruche (phase 1 and 2) development to approximately
The initial FID approved for the Hibiscus/Ruche development was approved in the fourth quarter of 2019 with an estimated gross development cost of about
THIRD QUARTER 2020 PRODUCTION UPDATE
Gross production from Tortue averaged 15,449 bbls/day in the third quarter of 2020, amounting to a total gross production of 1,421,329 bbls of oil. BW Energy completed one lifting in the quarter, realising an average price of approximately USD 46 per barrel. Production cost (excluding royalties) was USD 19.6 per barrel. This includes approximately
BW Energy’s share of gross production was 1,044,676 bbls of oil. Net sold volume, which is the basis for revenue recognition in the financial statement, was 548,441 bbls, reflecting an under-lift position of 299,110 bbls at the end of the third quarter.
The company generated a positive cash flow with a cash balance of
For further information, please contact:
Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76
ir@bwenergy.no
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This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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