Energy SpA — Earnings Release 2021

Oct 20, 2021

BW Energy: Start of production from Tortue Phase 2 and Q3 2021 trading update

BW Energy: Start of production from Tortue Phase 2 and Q3 2021 trading update

Start of production from Tortue Phase 2 and Q3 2021 trading update

BW Energy today provides an update on the operations and development of the

Dussafu Marin license in Gabon. As part of the Tortue Phase 2 field development,

hook-up of the final two production wells DTM-6H and DTM-7H has been completed

and handover to production operations made. The Company is pleased to announce

that the Gamba well DTM-7H was successfully brought online as of 19 October. The

second well, DTM-6H in the Dentale formation, is scheduled to come onstream in

the coming days. Current production prior to the two new production wells is

around 11,500 barrels of oil per day.

The Tortue development consists of six production wells, tied back to the FPSO

BW Adolo, Completion of the DTM-6H and DTM-7H wells were suspended last year due

to the COVID-19 pandemic. This concludes the Tortue Phase 2 project with zero

Health, Safety, Security & Environment (HSSE) incidents.

"The Tortue Phase 2 development was completed below budget and within the

revised timeframe. We look forward to the production growth following first oil

from the two wells. Operationally we will now focus on stabilisation of the

production and wrapping up the project activities", said Carl K. Arnet, the CEO

of BW Energy.

Gross production from the Tortue field averaged approximately 9,000 barrels of

oil per day in the third quarter of 2021, amounting to a total gross production

of 0.8 million barrels of oil for the period. The decrease in production

compared to the second quarter of 2021 was mainly due to plant shutdowns and

temporary operational issues. The previously communicated shortage of gas

lifting capacity also impacted production. A nitrogen generation unit has been

installed on BW Adolo which has significantly improved production efficiency.

As previously guided, there were no BW Energy liftings in the quarter.

Production cost (excluding royalties) was approximately USD 36 per barrel.

While the absolute production cost remained stable, the unit cost expressed

reflects the lower production rate realised in the third quarter. The overall

production cost includes approximately USD 1.5 million of costs related to the

continued handling of the COVID-19 pandemic through the period. Third quarter

revenue is expected to reflect approximately 195,000 barrels of quarterly

Domestic Market Obligation (DMO) deliveries with an under-

lift position of around 203,000 barrels at the end of the period.

BW Energy had a cash balance of USD 170 million at 30 September 2021, compared

to USD 216 million at 30 June 2021. The decrease is mainly due to investment

activities related to Tortue Phase 2, progress on the Hibiscus/Ruche project, as

well as completing the exploration drilling campaign in Dussafu.

BW Energy has scheduled a webcast for 23 November 2021 where the company will

provide a comprehensive presentation of operations and ongoing development

projects.

For further information, please contact:

Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76

ir@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 242 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.