BW Energy Spearheads Alternative Development Plan in Gabon

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.

Share This Article

Share on twitter
Share on facebook
Share on linkedin
Share on reddit
Share on whatsapp
Share on email

Other Reads



Sihle Qekeleshe is a Web Editor at Energy Capital & Power. She has experience as a Copywriter and Editor in various industries.

Sign up for latest news and event info

Copyright © 2022 Energy Capital & Power. Privacy Policy · Terms of Use