BW Energy cuts capital expenditure by 50%

BW Energy, which only just listed in Oslo last month, has announced adjustments to the development program on the Dussafu Marin license in Gabon in response to the spread of the coronavirus and restrictions on international travel.

According to the company, the impact of international travel restrictions is limiting the company’s ability to move essential personnel, subcontractors and equipment to and from Gabon and it may affect the timing of the drilling of the planned DTM-7H well and the subsequent exploration well. The major contracts provide for certain termination rights under the current circumstances.

The company has for the same reason decided to not exercise the options for the two additional exploration wells under the existing rig contract.

In a further response to the market volatility, BW Energy has decided to defer the Ruche Phase 1 development and cut capital spending program for 2020 to approximately $125m from previously announced $250m.

The company said the production at the field is normal with total Dussafu production for 2020 projected to be 16,000 – 18,500 bbls/day.

“We are continuously evaluating our drilling program and the potential impact for the DTM-7H well and the planned exploration well. We are also taking decisive action to reduce investments in light of current market volatility and uncertainty, which combined with company-wide cost saving initiatives will conserve liquidity,” said Carl Arnet, CEO of BW Energy.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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