Energy SpA — M&A Activity 2021

Jan 14, 2021

BW Energy: Signs Kudu Farm-In Agreement

BW Energy: Signs Kudu Farm-In Agreement

BW Kudu Limited, a wholly owned subsidiary of BW Energy Limited and the National

Petroleum Corporation of Namibia (NAMCOR) have signed a Farm-In and Carry

Agreement. The agreement increases BW Kudu's working interest in the Kudu

license offshore Namibia from 56% to 95% in line with previously disclosed

intentions. NAMCOR will retain the remaining 5% working interest.

The agreement is subject to the approvals of BW Kudu's and NAMCOR's Boards as

well as Namibian regulatory authorities. The agreement gives NAMCOR the

opportunity to acquire an additional 5% working interest post first gas, while

BW Kudu will pay USD 4 million at completion of the transaction and carry

NAMCOR's share of development costs until first gas.

"Kudu gas is an important project for the energy sector and for Namibia. It has

the potential to provide a valuable contribution to Namibia's energy mix and

local value creation by monetizing stranded gas which is an untapped natural

resource in Namibia. The next step for the Kudu joint venture will be to secure

long-term commercial gas sales agreements, update the development plan to meet

offtake needs and ensure robust financial project returns", said Carl K. Arnet,

the CEO of BW Energy.

The Kudu gas field is located about 130 km offshore the southern parts of

Namibia. It contains an estimated 1.3 TCF of gas (P 50) and was discovered in

1974. The new arrangement will enable gas sales arrangements and increases the

likelihood of securing financing for the upstream Kudu development.

NAMCOR's Managing Director, Immanuel Mulunga, said the Kudu project may become

the first ever oil and gas development offshore Namibia: "It represents an

opportunity to reduce carbon emissions and strengthen energy independence for

Namibia, which currently imports a major part of its electricity from coal fired

power plants outside of the country. I am confident this development will

inspire increased exploration initiatives in other licence areas in the

country."

"Developing Kudu will provide insights which can be used to unlock similar

abundant stranded gas reserves available around the world. Adding cost efficient

gas to the energy mix of tomorrow is going to be vital to reach the world's

environmental targets," Carl K. Arnet added.

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 listed on the Oslo Stock Exchange 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.