Oslo-listed oil and gas E&P player BW Energy has signed a sale and leaseback agreement with China’s Minsheng Financial Leasing (MSFL) for a jack‑up drilling rig.
BW Energy will receive an $80 million cash consideration, strengthening financial flexibility while maintaining continued access to the Jasmine Alpha rig as part of a 12‑month lease that has an option to extend for a further 12 months.
The firm said it expects to recognize an equity gain above the carrying value of the rig, reflecting the value increase since the acquisition of the rig at a favourable price during the Covid-19 pandemic in 2020.
“We are realising substantial value from an asset acquired at a deep discount while maintaining operational availability and full strategic flexibility, including the potential future repurposing into a production platform for deployment in our development portfolio,” said Thomas Young , CFO of BW Energy. “The transaction strengthens BW Energy’s balance sheet and demonstrates our ability to repeatedly execute flexible and competitive infrastructure financing solutions in support of our plan to triple production in 2028.”
This builds on BW Energy’s established partnership with MSFL, including the ongoing financing of the Maromba B wellhead platform . The terms of the new arrangement are said to align with the company’s existing infrastructure financing strategy.