Energy SpA — Earnings Release 2020

Jan 18, 2021

BW Energy: Q4 2020 trading update

BW Energy: Q4 2020 trading update

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

Dussafu Marin license in Gabon. The Company will publish its financial report

for the fourth quarter and full year 2020 on Friday, 19 February 2021.

Gross production from the Tortue field averaged approximately 13,500 barrels of

oil per day in the fourth quarter of 2020, amounting to a total gross production

of 1.24 million barrels of oil for the period. BW Adolo had scheduled downtime

of 11 days in October for its annual maintenance program and to comply with

Gabonese production allocations to meet the nation's OPEC quotas.

BW Energy completed two liftings in the quarter, realising an average price

of approximately USD 46.5 per barrel. The latter lifting will be paid to the

Company in January 2021. Production cost (excluding royalties) was USD 22.7 per

barrel. This includes approximately USD 2.2 million of additional costs related

to handling the COVID-19 pandemic in the quarter.

BW Energy's share of gross production was approximately 914,000 barrels of oil.

Net sold volume, which is the basis for revenue recognition in the financial

statement, was 1.26 million barrels including approximately 162.000 barrels of

fourth quarter DMO deliveries and an over-lift position of around 41,000

barrels at the end of the period.

Execution of Dussafu development plan is progressing with the recent award of a

drilling contract for one development well (DTM-7H) and one exploration well.

Additionally, BW Energy holds an option for another exploration well subject to

the results of the drilling campaign.

In November 2020, BW Energy concluded on an alternative development plan for the

Hibiscus/Ruche satellite field, utilising a converted jack-up as an offshore

installation. Planning for the Hibiscus Alpha conversion project is progressing

with focus on structural engineering and yard selection. The use of a converted

jack-up is expected to reduce capital investments by around USD 100 million

compared to constructing and installing a new wellhead platform.

BW Energy had a cash balance of USD 120 million at 31 December 2020, compared to

USD 145 million at 30 September 2020. The decrease is mainly due to the

abovementioned working capital impact of the December lifting and previously

announced payments for the acquisition of two jack-ups.

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 FPSOs 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 247 million barrels at the start of 2020.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.