BW Energy has signed a sale and leaseback agreement with Minsheng Financial Leasing (MSFL) for the Jasmine Alpha jack‑up drilling rig.
BW Energy will receive an $80 million cash consideration, strengthening financial flexibility while maintaining continued access to the unit, the company said.
Under the agreement, BW Energy has entered into a 12‑month lease of the rig, with an option to extend for a further 12 months.
The company expects to recognize an equity gain above the carrying value of the rig, reflecting the value increase since the acquisition of the rig at a favorable price during the Covid-19 pandemic in 2020.
“We are realising substantial value from an asset acquired at a deep discount while maintaining operational availability and full strategic flexibility, including the potential future repurposing into a production platform for deployment in our development portfolio.
“The transaction strengthens BW Energy’s balance sheet and demonstrates our ability to repeatedly execute flexible and competitive infrastructure financing solutions in support of our plan to triple production in 2028,” said Thomas Young, the CFO of BW Energy.
The agreement builds on BW Energy’s established partnership with MSFL, including the ongoing financing of the Maromba B wellhead platform.