GABON: BW Energy Reports Increased Production in the Dussafu licence
Gross production from the operated assets was 27,400 barrels of oil per day in the third quarter 2023. This included a full quarter of production from the Tortue and Hibiscus fields in the Dussafu licence (73.5% working interest) and production from the Golfinho field after assuming 100% ownership on 28 August.
Gross production from the Dussafu licence averaged approximately 23,200 barrels of oil per day in the quarter, amounting to a total gross production of approximately 2.14 million barrels of oil for the period. Production was positively impacted by first oil from two additional Hibiscus wells during the quarter and start-up of the additional gas lift compressor on the FPSO BW Adolo. BW Energy completed one lifting in the third quarter at a price of USD 79 per barrel. Production costs (excluding royalties) for the period was approximately US 28 per barrel. The reduction, compared to the previous quarter, reflects mainly the increased production.
BW Energy’s share of gross production was approximately 1.57 million barrels of oil, an increase of over 50% from the prior quarter. The net sold volume, which is the basis for revenue recognition in the financial statement, was approximately 1 million barrels including 32,500 barrels of Domestic Market Obligation (DMO) deliveries with an under-lift position of 116,000 barrels at the end of the period.
In July and September, the Company safely commenced production from the third and fourth well, respectively, of the Hibiscus / Ruche Phase 1 development. Challenges with the ESP (electronical submersible pump) on the DHIBM-3H and -4H wells temporarily impacted production. The ESPs were re-started in mid-October and the Company is working to stabilise production from both wells. The current total Dussafu gross production, with all the Tortue and Hibiscus wells in operation, is approximately 35,000 barrels of oil per day.
At the Ruche field, drilling- and completion activities on the DRM-3H production well was temporarily suspended pending an alternative final casing design after encountering oil in the Gamba reservoir. The Company expects to return to complete this well later in the drilling campaign when additional casing material is received.
To maximize the use of the contracted drilling rig, the Dussafu partners have initiated drilling of the Hibiscus South exploration prospect (DHBSM-1), located about 5 kilometers southwest of the BW MaBoMo production platform. If DHBSM-1 contains commercial volumes, the plan is to return to the well and complete it as a production well in early 2024. The ongoing Hibiscus / Ruche drilling campaign has the potential to bring total oil production on the Dussafu license up to approximately 40,000 barrels per day gross when all wells are completed and on-stream.