Gross production from the Tortue field averaged approximately 11,600 barrels of oil per day in the first quarter of 2022, amounting to a total gross production of approximately 1 million barrels of oil for the period. The reduction in production compared to the fourth quarter of 2021 was due to the 12-day planned annual maintenance shutdown of the BW Adolo in February, which more than offset the positive impact of a full quarter of production from the two new Tortue phase-2 wells and the use of interim nitrogen gas lift.
BW Energy completed one lifting in the quarter at a price of USD 120 per barrel. Production cost (excluding royalties) was approximately USD 33 per barrel. The overall production cost includes approximately USD 1 million related handling of the COVID-19 pandemic in the period.
BW Energy’s share of gross production was approximately 765,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 1,015,000 barrels including 65,000 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an over- lift position of 384,000 barrels at the end of the period.
BW Energy had a cash balance of USD 111 million at 31 March 2022, compared to USD 150 million at 31 December 2021. The decrease was mainly due to high investment activities related to the Hibiscus/Ruche project. Payment for the March 2022 lifting is expected to be received by end of April.
At the beginning of period, the Company had entered into commodity price hedges for a total volume of 1.6 million barrels for 2022 and 2023, of which 59% is for 2022. These were a combination of swaps and zero-cost collars that will allow for future cash flow stability for ongoing development projects.
BW Energy has recognized crude oil hedge losses in the amount of USD 22.2 million for the first quarter, of which approximately 50% were realised in the period.