Page 14 - AfrOil Week 43 2022

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PERFORMANCE
BW Energy announces

trading and financial
update for Dussafu

Marin in Q3-2022

BW Energy has provided an update on the oper-
ations and development of the Dussafu Marin
license in Gabon. The Company will publish
financial figures for the third quarter of 2022
on Thursday, November 17. The Dussafu Marin
Permit and the associated Ruche Exclusive
Exploitation Area (EEA) production license
are located approximately 50 km off the coast of
Gabon.
Gross production from the Tortue field aver-
aged approximately 10,400 bpd of oil in the third
quarter of 2022, amounting to a total gross pro-
duction of approximately 960,000 barrels of oil
for the period in line with expectations.
BW Energy completed one lifting in the quar-
ter at a price of $101 per barrel. Production cost
(excluding royalties) was approximately $36 and the BW MaBoMo. Some 20 km of the subsea Arkab said that there are still areas of co-op-
per barrel. The overall production cost includes pipeline has now been installed, with final con- eration that can be expedited with Egypt, such as
approximately $1mn related handling of the nections planned for year-end. petrochemical projects.
COVID-19 pandemic in the period. Separately, the drilling rig is on schedule to In February, Egypt’s President Abdel Fattah
BW Energy’s share of gross production was spud the first production well planned in Janu- El-Sisi told his Algerian counterpart Abdelmed-
approximately 700,000 barrels of oil. The net ary. This in in line with the plan for first oil from jid Tebboune that Egypt is seeking to expand
sold volume, which is the basis for revenue rec- the Hibiscus/Ruche development towards the trade and investment with Algeria, as well as
ognition in the financial statement, was 715,000 end of the first quarter of 2023. strengthen security and military ties.
barrels, including 32,500 barrels of quarterly BW Energy, October 25 2022 bna/IntelliNews, October 27 2022
Domestic Market Obligation (DMO) deliveries
with an under-lift position of 185,000 barrels at Egyptian and Palestinian
the end of the period. POLICY
BW Energy had a cash balance of $186mn companies to form joint
at 30 September 2022, compared to $123mn at Egypt, Algeria sign
June 30, 2022. The increase is due to the payment venture to exploit Gaza
received for the August lifting and a drawdown MoUs for energy and
on the Company’s reserve-based lending (RBL) Marine natural gas field
facility, partly offset by continued investments in mining co-operation
the Hibiscus/Ruche development project. Egypt and the Palestinian Authority are on the
At the start of the period, the Company had Egypt and Algeria have signed memoranda of verge of finalising the agreement to develop Gaza
commodity price hedges for a remaining total understanding (MoUs) for co-operation in the Marine natural gas field by the first quarter (Jan-
volume of 1mn barrels for 2022 and 2023, of fields of gas, oil and mines that include market- uary-March) of 2023 located in offshore Gaza,
which 37% is for 2022. These were a combina- ing of petroleum products (especially butane) Egyptian Petroleum Minister Tarek El Molla was
tion of swaps and zero-cost collars that will allow and research, exploration and production of quoted by Bloomberg El Shark as saying.
for future cash flow stability for ongoing devel- energy, according to a report by daily news por- A new joint venture to develop the field is in
opment projects. BW Energy has recognised tal Arab News on Wednesday, October 26. the works with the sovereign Palestinian Invest-
realised crude oil hedge losses in the amount of The co-operation deals were signed by Tarek ment Fund and United Contractors taking up
$2.9mn and unrealised gains in the amount of El-Molla, Egypt’s Minister of Petroleum and 55% of the equity and with the remaining 45%
$14.9mn for the third quarter. Mineral Resources, and Mohammed Arkab, being owned by state-owned Egyptian Natu-
In late September, the BW MaBoMo off- Algeria’s Minister of Energy and Mines. ral Gas Holding Co. (EGAS), which will be the
shore production facility arrived in Gabon on Both parties agreed in principle to set up a operator of the field.
schedule. joint Africa-focused firm which will carry out Gaza Marine is located 22 km offshore Gaza
The production facility has since been studies and projects to convert conventionally and contains estimated reserves of 1 trillion
installed on site and preparations are underway fueled cars into natural gas-powered vehicles. cubic feet (28.3bn cubic metres) of natural gas
for future drilling operations and for the tie-in The new company will be tasked with improving with an expected lifetime production cycle of
of the export pipeline to the BW Adolo FPSO the hydrogen industry in Africa. 10-12 years.

P14 www. NEWSBASE .com Week 43 27•October•2022