BW Energy has taken a final investment decision (FID) for the Bourdon development in the Dussafu licence offshore Gabon and a set of new infill wells in the Golfinho licence in Brazilian waters.
The company stated that the combined gross proved and probable (2P) reserves estimate for these sanctioned projects stands at 68 million barrels of oil equivalent (mboe).
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With these projects, BW Energy will increase its targeted net production in 2028 by around 10% to more than 100,000 barrels of oil per day (bopd). The company anticipates that this will help it maintain production levels into the next decade.
The Bourdon Phase 1 development will target 25mboe in gross 2P reserves, with first oil expected in the first quarter of 2028.
The plan involves the conversion of the Akoum rig, formerly the Jasmine Alpha, into a new wellhead platform with 12 available slots.
Initial output will come from three wells, and the platform is designed for future phases near Bourdon where further resources have been identified.
BW Energy’s net capital expenditure (capex) for Bourdon is set at $300m, with around $100m to be spent ahead of first oil, supported by a sale-and-leaseback agreement with Minsheng.
A term sheet has been signed for a long-term lease, which is intended to cover the complete wellhead platform expenditure before production commences.
Project returns are reported with an internal rate of return (IRR) above 25% at $60 per barrel (bbl) and a breakeven of $45/bbl at a 10% discount rate. BW Energy holds 73.5% as operator, with Panoro and Gabon Oil Company at 17.5% and 9%, respectively.
The Golfinho project involves four new wells located in proven areas, with first oil targeted for the end of 2028. Three wells are in the Golfinho licence and one in the Camarupim licence, all to be tied back to the Golfinho floating production storage and offloading vessel using current pipeline facilities.
This is projected to triple production in the Golfinho area to approximately 30,000 barrels of oil equivalent per day from 2029.
The development’s net capex is estimated at $450m, with $170m committed to long-lead items and $280m allocated flexibly up to six months before production.
The project is expected to deliver an IRR above 50% at $60/bbl and a breakeven of $40/bbl at a 10% discount rate. BW Energy is the operator with a 100% interest.
BW Energy CEO Carl Arnet said: “These two projects add highly profitable production in licences with proven reserves and multiple growth opportunities. Through the repurposing of existing energy assets and a phased approach, BW Energy has optimised the development solutions supported by low-cost infrastructure-backed financing.
“This yields high return-projects, increasing our net production to above 100,000bopd in 2028 and positioning us to sustain this level into the next decade.”
