BW Energy Finalizes Long-Term Lease for Maromba Platform
BW Energy has announced an exciting development as its previously signed short-term lease for the Super Gorilla class jack-up rig BW MAROMBA B has now transitioned into a long-term project lease agreement with Minsheng Financial Leasing Co. Ltd. (MSFL). This change is a significant step for the company as it prepares for the Maromba field’s next phase.
Details of the New Lease Agreement
The new lease agreement not only covers the acquisition of the rig but also encompasses all necessary costs needed to prepare the MAROMBA B wellhead platform for drilling and production operations. This substantial figure totals USD 274 million as part of the previously outlined Maromba capital expenditure (CAPEX) and proposes a financially feasible lease structure that will span over a decade.
Financial Terms and Implications
The commencement of the lease will align with the start of oil production from the Maromba development, with an advantageous arrangement of no payments required prior to initiating production. The lease is structured with a fixed daily rate of USD 120,500, ensuring BW Energy can maintain budget predictability during the entirety of the lease term.
Statements from BW Energy's Leadership
Thomas Young, the CFO of BW Energy, expressed satisfaction with the agreement: “We are pleased to establish an attractive lease financing for the full scope of the Maromba wellhead platform investment, building on our strong relationship with MSFL. This agreement further highlights our ability to consistently leverage repurposed production infrastructure to enable cost-efficient greenfield developments.”
Logistics and Upcoming Developments
The rig is currently on its way from Singapore to Dubai, where it is expected to arrive by the end of the year. At the Dubai facility, refurbishment and conversion into a fully integrated drilling and production platform will take place. The rig's recent operation in Australia is anticipated to support a smooth upgrade and refurbishment process. After these enhancements, it will make its way to Brazil to begin drilling and completion work as part of the phased development strategy for the Maromba field.
About BW Energy
BW Energy is recognized as a growth-oriented exploration and production (E&P) company, distinguished by its strategy aimed at tapping into proven offshore oil and gas reservoirs via low-risk phased development approaches. By accessing existing production facilities, BW Energy is positioned to accelerate time to first oil and generate cash flow, all while minimizing investments compared to conventional offshore developments. The company holds a 73.5% interest in the producing Dussafu Marine licence offshore Gabon, alongside a 100% interest in the Golfinho and Camarupim fields, a 76.5% stake in the BM-ES-23 block, a 95% interest in the Maromba field situated in Brazil, and a 95% interest in the Kudu field in Namibia. BW Energy also possesses approximately 7% of the common shares in Reconnaissance Energy Africa Ltd., in addition to a non-operating 20% interest in the onshore Petroleum Exploration License 73 in Namibia. As of early 2025, the total net 2P+2C reserves and resources stood at an impressive 599 million barrels of oil equivalent.
For further information, please contact:
Martin Seland Simensen, VP Investor Relations
ir@bwenergy.no
Frequently Asked Questions
What is the significance of the long-term lease for BW Energy?
The long-term lease allows BW Energy to effectively manage the costs related to the Maromba project, ensuring financial stability as development progresses.
How does the lease agreement impact the Maromba development timeline?
The lease agreement's terms align with the initial oil production, allowing the company to focus on development without upfront costs before production begins.
Who is the partner for the lease agreement?
The lease agreement was finalized with Minsheng Financial Leasing Co. Ltd. (MSFL), reflecting BW Energy's commitment to establishing strong partnerships.
What is the projected daily cost for the lease?
The lease agreement features a fixed daily cost of USD 120,500, offering BW Energy a predictable financial structure for the duration of the lease.
What are BW Energy's key assets?
BW Energy’s assets include a major interest in the Dussafu Marine licence, operational fields in Brazil and Namibia, and significant oil reserves established through strategic investments.
