Energy SpA — Investor Presentation 2021

Nov 23, 2021

Q3 2021

CEO Carl K. Arnet CFO Knut R. Sæthre COO Lin G. Espey

23 November 2021

Disclaimer

This Presentation has been produced by BW Energy Limited exclusively for information purposes. This presentation may not be redistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, financial performance and results of BW Energy and/or the industry in which it operates. Forwardlooking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of BW Energy or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of BW Energy or any of its parent or subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. BW Energy assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither BW Energy nor any of its parent or subsidiary undertakings or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Actual experience may differ, and those differences may be material. By attending this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of BW Energy and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the businesses of BW Energy. This presentation must be read in conjunction with the recent Financial Information and the disclosures therein. This announcement is not an offer for sale or purchase of securities in the United States or any other country. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be sold in the United States absent registration or pursuant to an exemption from registration under the U.S. Securities Act. BW Energy has not registered and does not intend to register its securities in the United States or to conduct a public offering of its securities in the United States. Any offer for sale or purchase of securities will be made by means of an offer document that may be obtained by certain qualified investors from BW Energy. Copies of this Presentation are not being made and may not be distributed or sent into the United States, Canada, Australia, Japan or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures. In any EEA Member State that has implemented Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market (together with any applicable implementing measures in any member State, the "Prospectus

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Highlights

Successful completion of final two Tortue Phase 2 wells in October, USD 45 million below budget

Provisional award of operatorship of two blocks in Gabon's 12th Offshore Licensing Round

Strong balance sheet with no debt and cash position of USD 170 million

• Managing the impact of COVID-19 pandemic on operations • No liftings to the Company in the quarter • Q3 gross production of 0.8 million barrels
• Q3 EBITDA of USD 8.3 million and net loss of USD 10.3 million
• One lifting completed in November and one lifting planned for December for BWE
• Hibiscus/Ruche development activities on track Acquired semi-submersible rig for repurposing to unlock Kudu development in Namibia

Zero-harm objective for people and environment

Minimizing impact to environment

Working for local society Sound governance

- COVID-19 still affecting general execution and in particular FPSO operation and modification work

• An incident recorded on BW Adolo with minor spill to the environment of 15 litres of oily water
• Security risk at Dussafu remains low

70-80%

1) FPSO BW Adolo case study based on Co2 emission tied to steel Estimated GHG emission-savings from redeployment of existing FPSO1 vs. newbuild

consumption and operations

Production outlook

Gross production estimate bbls/day1 Net production estimate bbls/day1

5 1) Management estimates

Dussafu

Production at Dussafu

• Q3 gross production 0.8 million bbls, equal to ~9,000 bbls/day
• Production impacted by plant shutdowns and limited gas lift capacity
• Gas lift limitations to continue to defer production until capacity increase in Q4 2022
• Q3 OPEX at USD ~36 per barrel including COVID
• Revised full year OPEX expectation to USD ~30 per barrel
• COVID-19 pandemic continues to restrict both execution of work on the FPSO beyond day-to-day operations and the supply chain response time

• Tortue phase 2 development final cost is estimated to Tortue Phase 2 successfully completed

• Tie-in of DTM-6H and DTM-7H completed in October
• First oil from DTM-7H on 19 October and DTM-6H on 25 October
• USD 230 million gross vs. a budget of USD 275 million ‒ 4 subsea production wells
  -
  • ‒ SURF tieback from two clusters
  • ‒ FPSO inlet manifold module

Dussafu production forecast

Gross production profile

• 2021 production estimate revised to ~4.1 million Additional gas lift required to optimise production
• ‒ Installed well capacity ~19,000 barrels lack of gas lift capacity will continue to defer production
  • ‒ New larger compressor ordered with expected installation in Q4 2022
  • ‒ Exploring interim measures to improve lift capacity
• ‒ Impacting near-term production, the long-term recovery rate from Tortue remains unchanged

Quarterly gross production (kbbls/day) Planned quarterly lifting schedule to BW Energy:

Hibiscus/Ruche field development progressing to plan ‒ Dubai Drydock World phase completed ‒ OI moved to Lamprell yard for topside work ‒ All major equipment packages purchased

• Hibiscus Alpha (OI) conversion
  -
  -
  -
  • ‒ Well-functioning COVID-19 protocols in Dubai
• Field work

  - ‒ Tender ongoing for drilling program

  • ‒ 4 wells firm + 4 optional wells ‒ Preparations to perform up to two exploration wells within the overall drilling programme
• On track for first oil in late Q4 2022
  -

Hibiscus Alpha at Dubai World Drydocks

Hibiscus North Exploration Well Results • Oil discovered in the Gamba and Dentale formations ‒ Lower volumes than pre-drill expectations

• -
• Work in progress to confirm oil in place estimates
• interpretation
• Potentially a future stand-alone subsea tie-in to Hibiscus Alpha

Post-drill interpretation

• Consortium has 15-year track record of successful ‒ Panoro Energy (25%) • The two blocks, G12-13 and H12-13 cover In negotiations for operatorship of bloc G and H in Gabon

• Provisionally awarded in the 12th Offshore Licensing Round
  • ‒ Subject to agreements on final production sharing contracts
• development and production on Dussafu and Etame
  -
  -
  -
• 2,989 km2 and 1,929 km2 , respectively
• Eight-year exploration period with potential for a two-
• year extension Commitment to drill exploration wells and intention to acquire 3D seismic on both blocks

Maromba

Progressing Maromba to FID

• Polvo FPSO is the candidate for the Maromba development
• Evaluating yards for upgrades, repairs and refurbishment and specifying long lead items
• Environmental Impact Assessment (EIA) for IBAMA submission ongoing
• Continuing to optimize field CAPEX, OPEX and time to first oil
• On track to FID in 2022 with a break-even below USD 40 per barrel oil price while achieving 15% IRR (incl. remaining acquisition costs)

Kudu

Revised Kudu gas development plan

• Acquired the 2011 built semi drilling rig "Leo" for USD 14 million
• Development plan is based on Leo as a Floating
• Production Unit (FPU) Pipeline routing and power plant location closer to existing power grid
• Near shore power barge concept for 250 MW base load and 170 MW peaking power capacity
• Significant optimisation of project timeline and capital
• expenditure vs. previous development concepts Replacing imported coal-based electricity with domestic power from natural gas significantly reduces the Namibian carbon footprint while ensuring stable energy supply

Q2 Financials

Income Statement

USD million	Q3 2021	Q2 2021	Change
Operating revenue	24.0	89.8	(65.8)
Operating expenses	(15.7)	(42.8)	27.2
EBITDA	8.3	46.9	(38.6)
Depreciation	(1.2)	(11.7)	10.6
Depreciation - ROU	(6.1)	(6.9)	0.8
Amortisation	(0.2)	(0.2)
Impairment
Other expenses	(7.4)	(18.8)	11.4
Operating profit/(loss)	0.9	28.2	(27.3)
Interest income	0.2	0.2
Interest expense
Lease liability interest expense	(3.1)	(3.2)	0.1
Other financial items	0.1	(0.8)	0.9
Net financial income/(expense)	(2.8)	(3.1)	0.9
Profit/(loss) before tax	(1.9)	24.4	(26.4)
Income tax expense	(8.4)	(9.0)	0.8
Net profit/(loss) for the period	(10.3)	15.5	(25.6)

• EBITDA decreased by USD 38.6 million due to no liftings in Q3

• Depreciation for state profit oil in Q3

• USD 1.8 million variance due to MTM gain in Q3 vs. loss in Q2, offset by (USD 1 million) variance due to exchange loss in Q3 vs. Q2

• 120k barrels less production in Q3

Balance Sheet

ASSETS Property and other equipment Right-of-use assets E&P tangible assets Intangible assets Other non-current assets Total non-current assets Inventories	Q3 2021	Q2 2021 0.4 211.1 246.1 134.4 3.8 595.8 13.6	Change
	0.4 205.0 255.0 178.0 4 0 642.4 27.0		(0.0)
			(6.1)
			8.9
			43.6
			0.2
			18.6
			13.4
Trade receivables and other current assets	38.6	64.1	(25.5)
Cash and cash equivalents	170.6	216.5	(45.9)
Total current assets	236.2	294.2	35.9
TOTAL ASSETS	878.6	890.0	54.6
EQUITY AND LIABILITIES	Q3 2021	Q2 2021	Change
Shareholders' equity Total equity Deferred tax liabilities Asset retirement obligations	530.2 530.2 6.4 14.9	540 3 540.3 5.9 14.7	(10.1)
			15.5
			0.5
			0.2
Long-term lease liabilities	218.1	223.1	(5.0)
Derivatives	0.0
Total non-current liabilities	239.4	243.7	(3.0)
	89.0	86.2	2.7
Trade and other payables
Short-term lease liabilities	19.7	19.5	0.2
Tax liabilities Total current liabilities	0.4 109.0	0.3 106.0	0.1
			42.1
Total liabilities	348.5	349.8	39.1
TOTAL EQUITY AND LIABILITIES	878.6	890.0	54.6

• Mainly due to the DTM-7H offset by depreciation USD 15.4 million Hibiscus North Well, USD 22 million Hibiscus/Ruche development and USD 4 million Kudu Farm-in • Mainly due to underlift position of 203k barrels
• Reduction mainly due to receipt of June lifting funds in Q3

• Increase in AP offset by a reduction of accrued expenses

19

Cash Flow Q3 2021

Outlook

in Q4 2021 ‒ Increase gas lift capacity Production and exploration Development Corporate Strategic priorities and value levers

• Optimising Dussafu output

  - ‒ DTM-6H and DTM-7H with first oil

• Completing Hibiscus North

• oil-in-place assessment Executing Dussafu exploration program

• Bringing Hibiscus / Ruche to first oil in late Q4 2022

• Progressing Maromba to FID in 2022 and planned first oil in 2024

• Maturing new, right-sized Kudu development concept with lower capex and improved timeline

• Maintaining strong balance sheet Ensuring operational cash flow to fund new projects and future shareholder returns
• Intention to pay dividend of up to 50% of net profit once fully operational at Dussafu and Maromba
• Progressing RBL financing

Q&A