BW Energy has signed a US$300 million international reserve-based lending facility, which will be used to further finance and develop the Dussafu licence offshore Gabon. 

With an initial commitment of US$200 million, the secured long-term debt facility can be expanded up to an additional US$100 million, and has a tenor of six years.

The Dussafu licence is within the Ruche Exclusive Exploitation Area, which covers 850 square kilometres. It includes six discovered oil fields and numerous leads and prospects.

The average water depth is 116 metres. The production sharing contract allows for production of hydrocarbons from the Ruche EEA for up to 20 years from first production, which was achieved in September 2018.

BW Energy is a growth-focused oil and gas company involved in the acquisition, development and production of oil and natural gas fields. It holds majority interests in three hydrocarbon licences in Gabon, Brazil and Namibia and focuses on hydrocarbon fields with significant upside potential to leverage its technical operational and basin expertise with repurposed infrastructure.

BW Energy targets 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 cash flow with lower investments than traditional offshore developments.

Its main assets are a 73.5% interest in the Dussafu Marine Permit offshore Gabon, and a 95% interest in the Maromba field in Brazil ( as at first oil ). Total net reserves were 240 million barrels at the start of 2022.

Watson Farley & Williams ( WFW ) has advised BW Energy on the debt facility. "This deal demonstrates WFW’s ability to assist our clients to achieve signing of complex upstream finance transactions including in respect of development assets," comments London-based WFW partner Joe Levin.

BW Energy chief financial officer Knut Sæthre says the financing strengthens the company’s liquidity position and enables further investment in Gabon, particularly in the Hibiscus/Ruche development project where first oil is expected in the first quarter of 2023.