Norwegian operator BW Energy has announced a new development plan for its Gabonese Hibiscus/Ruche project, which aims to reduce both the cost of oil production and carbon emissions, in a bid to better withstand the COVID-19 crisis.
The company has acquired two jack-up drilling platforms for the program – twin units Atla and Balde – for a total cost of approximately $15 million. The two platforms will later be converted, reducing capital investments by around $100 million compared to the initial development plan, as well as reducing time to first oil. The Hibiscus/Ruche satellite field is located within the Dussafu offshore license.
According to industry data, drilling rig conversion projects and their redeployment for production reduce greenhouse gas emissions by 70-80%. This is mainly due to reduced steel consumption and shorter assembly times on site. The new development plan is expected to lower estimated production price per barrel for Hibiscus/Beehive (Phases 1 and 2) to around $25. With the expected increase in Hibiscus/Beehive production, the cost of operating the Dussafu license, which also includes the Turtle field, is expected to drop to around $11 per barrel.
“We benefit from the availability of high-quality units at very attractive prices due to the current collapse in the drilling market. By reusing the facilities, we will also obtain a substantial reduction in CO2 emissions linked to the development of the field compared to a newly built platform,” said Carl Krogh Arnet, Chief Executive Officer of BW Energy.
BW Energy is a subsidiary of Oslo-based BW Group, a global maritime group involved in shipping, floating gas infrastructure and deep-water oil and gas production.