As it marches toward a production target of 100,000 barrels per day, Oslo-listed oil and gas exploration and production (E&P) player BW Energy has shored up its balance sheet to support its long-term growth ambitions, securing a $208 million project-level lease for an offshore field’s wellhead platform (WHP) off the coast of Gabon alongside an 18-month extension on its corporate credit facility.
BW Energy has entered into a $208 million project-level lease financing for the Akoum wellhead platform to be installed on the Bourdon field offshore Gabon and signed an 18-month extension to the $250 million corporate revolving credit facility (RCF). These agreements further strengthen the financing platform as the firm executes its long-term growth strategy.
Thomas Young, CFO of BW Energy, commented: “The Bourdon development is a great example of what our business model can deliver. Fourteen months from discovery to FID, and now the full infrastructure cost financed long term at an attractive cost of capital, without upfront equity. Extending the RCF adds further flexibility as we grow towards more than 100,000 barrels per day.”
Following a final investment decision (FID) on the Bourdon development in the BW Energy-operated Dussafu license in May, conversion of the Akoum rig, formerly Jasmine Alpha, into a 12-slot wellhead platform is said to be progressing to plan. The unit will provide capacity for future planned development phases in the area, with first oil targeted in the first quarter of 2028.
The Oslo-listed company highlights that the twelve-year lease with Minsheng Financial Leasing (MSFL) replaces the previously announced short-term financing, covering 100% of the platform's capital expenditure, and has a firm term of eight years, with an option to extend by a further four years.
Lease costs are shared by the Dussafu license partners in line with their participating interests, with BW Energy's share at 73.5%. The firm points out that the ownership of the platform passes to the license at the end of the lease.
The offshore operator has exercised an option to extend the tenor of the RCF with DNB Bank by a further 18 months with the new maturity in August 2028 on the same terms, providing enhanced financial flexibility in support of ongoing field development activities and general corporate purposes.