Energy SpA — Capital/Financing Update 2021

Oct 25, 2021

BW Energy: Signed agreement for the acquisition of semi-submersible drilling rig for the Kudu development

BW Energy: Signed agreement for the acquisition of semi-submersible drilling rig for the Kudu development

Signed agreement for the acquisition of semi-submersible drilling rig for the

Kudu development

BW Energy is progressing a revised development plan for the Kudu gas field

offshore Namibia. The new development plan for the gas to power project will use

a repurposed semisubmersible drilling rig as a Floating Production Unit.

The Company has signed an agreement to acquire the semisubmersible drilling rig

"Leo", from Aquadrill LLC for a total consideration of USD 14 million.

Repurposing will enable an optimisation of the project timeline and

significantly reduce capital investments compared to previous development

concepts.

"The revised development concept offers tangible financial, schedule and

environmental benefits. The re-use of existing facilities also supports a

substantial reduction in field development related greenhouse gas emissions

compared to a new-build," said Carl Krogh Arnet, the CEO of BW Energy. "We have

consequently decided to take advantage of the availability this high-quality

semi at an attractive price. The replacement of imported power with domestic

power produced with natural gas will reduce Namibia`s carbon footprint and

ensure power stability for the future."

The revised integrated development plan aims to supply competitive power to a

growing African market with significant upside potential. A development of the

Kudu field is an attractive opportunity for BW Energy to engage in the

electricity market and potentially fully or partially assume a position as an

Independent Power Producer (IPP) through strategic partnering.

"We consider the electrification of the African economies as a significant long-

term growth opportunity for BW Energy and a potential avenue for us to develop a

new strategic position closer to the end customers of energy," said Carl Krogh

Arnet.

The timing of the final project sanctioning is subject to realising a project

financing solution for the Kudu gas to power project.

For further information, please contact:

Knut R. Sæthre, CFO, +47 911 17 876

ir@bwenergy.no or www.bwenergy.no

About BW Energy:

BW Energy is a growth E&P company with a differentiated strategy targeting

proven offshore oil and gas reservoirs through low risk phased developments. The

Company has access to existing production facilities to reduce time to first oil

and cashflow with lower investments than traditional offshore developments. The

main assets are 73.5% of the producing Dussafu Marine Permit offshore Gabon and

a 95% interest in the Maromba field in Brazil, both operated by the Company.

Total net 2P+2C reserves were 243 million barrels at the start of 2021.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.