BW Energy Inks $150M Deal for MaBoMo Production Facility Offshore Gabon

MaBoMo production facility (Credit: BW Energy)
MaBoMo production facility (Credit: BW Energy)

Oil and gas company BW Energy has signed a sale and leaseback agreement with a Minsheng Financial Leasing (MSFL) for the MaBoMo production facility on the Dussafu license, offshore Gabon.

The agreement will provide $150 million of gross sales proceeds under a 10-year lease term with an option to repurchase the unit from the end of year seven.

According to BW Energy, the transaction frees up net $110 million of liquidity to the company, in line with the working interest in the license.

BW Energy has a 73.5% interest in the Dussafu permit offshore Gabon, with partner Panoro with the remaining 17.5% stake.

The proceeds will be used to finance the execution of BW Energy's growth strategy including the continuing development projects in Gabon.

"We are very pleased to have executed the lease financing with MSFL. It represents a new source of funding at an attractive capital cost and supports execution of our strategy for long-term value-creation," said Knut R. Sæthre the CFO of BW Energy.

Panoro has provided an update for the Dussafu operations in Gabon, stating the gross production averaged approximately 24,840 bopd in first quarter 2024 and in the second quarter to date has averaged approximately 29,800 bopd.

The uplift in output being attributable to start up of production at the Hibiscus South field where the DHBSM-1H production well was put onstream in March. Gross production at the Dussafu Marin Permit is expected to reach 40,000 bopd once all wells in the current campaign are completed.



At the Ruche field, the DRM-3H ST1 production well has successfully been drilled and completed without incident. The well encountered good quality oil saturated reservoir sands in the regionally prolific Gamba formation and will be put onstream in the second quarter with a new conventional electrical submersible pump (ESP).

According to Panoro, the Borr Norve jack-up drilling rig has now started operations on the DHBSM-2P pilot well to test a possible north-eastern extension of the Hibiscus South field. In the event of a successful outcome a production well would be drilled into this extension, or the top-hole section of the pilot hole will be utilized to drill a production well in the main Hibiscus area.

"We are encouraged by the good recent production performance at Dussafu, where continued drilling success further extends the block's long history of delivering positive subsurface results.

“The sale and lease back agreement executed by the operator will result in a material cash inflow for Panoro which will enhance our development, including our ability to deliver shareholder returns, reduce bank borrowings, and opportunistically capitalize on growth opportunities,” said John Hamilton, CEO of Panoro.

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