BW Energy: Makes FID on Maromba field development in Brazil  

05 May 2025 07:30 CEST

BW Energy makes FID on Maromba field development in Brazil

BW Energy is pleased to announce the final investment decision (FID) for the
Maromba development offshore Brazil based on a capex-efficient development with
an integrated drilling and wellhead platform (WHP) and a refurbished FPSO. The
development targets 500 million barrels of oil in place in the highly delineated
and tested Maastrichtian sands. First oil is planned by end-2027 with expected
plateau production of 60,000 barrels of oil per day. The development will more
than double BW Energy's total net production by 2028 and has short pay-back
time.

Project highlights:

* Initial six production wells from the WHP

* The WHP will be a converted drilling jack-up with up to 16 well slots and
production- and test-flowlines connected to the redeployed FPSO BW Maromba
(ex. Polvo)

* A second six-well drilling campaign will fully leverage the established
field infrastructure and allow for appraisal and testing of other reservoir
horizons

* BW?Maromba refurbishment and life extension work is already underway at the
COSCO yard in China

* Total investments of USD ~1.5 billion, split USD ~1.2 billion for the
initial development and a further USD ~0.3 billion for the secondary
drilling campaign

"We have spent time on optimising the Maromba development plan and concluded on
a highly competitive concept with a repurposed jack-up platform and FPSO,
repeating the approach we very successfully applied in Gabon. Maromba will
enable BW Energy to deliver industry-leading organic production growth and
position the Company for further low-cost developments of known potential
developments. We expect to unlock significant shareholder value in all realistic
oil price scenarios," said Carl K. Arnet, the CEO of BW Energy.

Capex-efficient development concept

The development comprises six initial Maastrichtian horizontal production wells
with dry-trees and artificial lift by downhole Electric Submersible Pumps
(ESPs). Production will be transferred from the WHP to the spread moored FPSO
Maromba for treatment, storage and offloading to shuttle tankers. The WHP will
be installed in ~150 meters of water depth with full drilling facilities. Once
installed, the infrastructure will also enable the planned secondary six-well
drilling campaign and provide potential for future development phases with low-
cost infill wells, potential water injectors as well as allowing appraisal and
production of multiple proven reservoirs outside the main Maastrichtian
resources.

The FPSO Maromba is currently at the COSCO yard in China, undergoing initial
refurbishment and life extension work following completion of condition
assessment and FEED.  The FPSO is designed with 1 million barrels of storage
capacity. The total liquid capacity will be 100,000 barrels per day with oil
production capacity of 65,000 barrels per day and water treatment capacity of
85,000 barrels per day.

BW Energy has agreed to acquire a jack-up with complete leg extensions for USD
107.5 million. The rig will undergo a limited conversion to serve as an
integrated drilling and wellhead platform prior to installation on the field.

"The repurposing of existing energy infrastructure enables reduced investments
and shorter time to first oil with significantly reduced greenhouse gas
emissions in the development phase, as compared to installing new production
assets," said Carl K. Arnet, the CEO of BW Energy.

Attractive field economics

BW Energy expects to invest approximately USD 1 billion before first oil and a
further USD 200 million to complete the initial drilling campaign before end
2028. This will be followed by USD 300 million for the additional six wells in
the second campaign with completion before end 2030.

BW Energy anticipates Maromba to achieve a competitive production cost,
averaging less than USD 10 per barrel over the first five years, underpinning
robust project economics.

Estimated project IRR exceeds 30% at oil at USD 60 per barrel Brent and break-
even at 10% IRR is around USD 40 per barrel Brent. The heavy oil from the
Maromba is expected to trade at a discount to Brent of approximately USD 7.5 per
barrel.

The development will be financed through existing cash and undrawn
facilities, cashflow from operations, and separate infrastructure financing
solutions related to the FPSO and WHP. The Company is also evaluating a range of
financing alternatives, including a corporate facility, reserve-based lending,
trader financing and the potential issuance of bonds.

BW Energy has also received a commitment by the main shareholder BW Group for a
USD 250 million shareholder loan facility.


The Maromba field

Maromba is located 100 km off the Brazilian coast in the Campos Basin. Nine
wells were drilled in the license between 1980 and 2006, with oil found in eight
of these across various reservoirs. The development project targets 123 million
barrels of 2P reserves (management estimates), with potential additional
resources from other reservoirs to be appraised along the development. BW Energy
acquired 100% ownership in Maromba in 2019 for a total of USD 115 million, of
which USD 85 million remains to be paid to the sellers at predefined milestones.
Magma Oil holds a 5% back-in right in the Maromba licence which is expected to
be executed upon first oil.

BW Energy is following all the steps of the approval process with the Brazilian
O&G Regulator (ANP) and with the Environmental Agency (IBAMA). The Company will
now proceed with contracting of long-lead items and services, as well as
finalising the financing agreements.

More information on the Maromba development will be shared in connection with
the first quarter 2025 earnings presentation held at Teatersalen, Hotel
Continental in Oslo, Norway, 09:30 CEST on 5 May.

The presentation can also be followed via webcast on:

VIEWER REGISTRATION ? Q1 2025
https://events.webcast.no/viewer-registration/9LwLZF1X/register


For further information, please contact:

Brice Morlot, CFO BW Energy

+33.7.81.11.41.16
ir@bwenergy.com (mailto:ir@bwenergy.com)


About BW Energy

BW Energy is a growth E&P company with a differentiated strategy targeting
proven offshore oil and gas reservoirs through low risk phased developments. The
Company has access to existing production facilities to reduce time to first oil
and cashflow with lower investments than traditional offshore developments. The
Company's assets are 73.5% of the producing Dussafu Marine licence offshore
Gabon, 100% interest in the Golfinho and Camarupim fields, a 76.5% interest in
the BM-ES-23 block, a 95% interest in the Maromba field in Brazil, a 95%
interest in the Kudu field in Namibia, all operated by BW Energy. In addition,
BW Energy holds approximately 6.6% of the common shares in Reconnaissance Energy
Africa Ltd. and a 20% non-operating interest in the onshore Petroleum
Exploration License 73 ("PEL 73") in Namibia. Total net 2P+2C reserves and
resources were 599 million barrels of oil equivalent at the start of 2025.

This information is considered inside information pursuant to the EU Market
Abuse Regulation and is subject to the disclosure requirements pursuant to
Section 5-12 the Norwegian Securities Trading Act. This stock exchange release
was published by Regine Andersen, 05 May 2025.

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