BW Offshore: Q3 2018 - Condensed interim consolidated financial information
* EBITDA of USD 126.4 million in the third quarter
* First oil at Dussafu achieved on 16 September
* Ruche commercial after Ruche North East discovery
* Investment decision made by BWO for Tortue Phase 2
EBITDA for the third quarter of 2018 was USD 126.4 million compared to USD 105.4 million in the second quarter. Improved performance at BW Catcher, which was affected by prolonged start-up activities in the second quarter, and first oil from the Dussafu license on 16 September, were the reasons for the increased EBITDA.
BW Offshore currently operates 12 units. The owned fleet includes 15 FPSOs and one FSO. Average commercial uptime during the third quarter was 98.4% (95.6%). BW Catcher experienced some commercial downtime in the quarter, but the performance improved notably compared to second quarter. Commercial uptime for the rest of the fleet was 99.8%.
In early July, BW Catcher completed a 168-hour performance test. The final acceptance certificate has been issued with effect from 1 November 2018.
First oil from Phase 1 of the Tortue development, in the Dussafu license, was achieved 16 September 2018 by the FPSO BW Adolo within budget and ahead of schedule with no Lost Time Incidents (LTIs). The field is currently producing from the two horizontal wells, DTM-2H and DTM-3H. Production has gradually increased while pressure has been closely monitored. Production performance has been in line with expectations and is currently stabilised at approximately 12,500 bopd without any water cut. Net production to the BW Energy partnership for the third quarter was 111.5 thousand barrels of oil. The first offloading from the FPSO is scheduled for late November.
The Company has made the investment decision for Tortue Phase 2 following the successful appraisal program on the western flank of the Tortue field. Phase 2 includes drilling of four additional horizontal development wells. Orders for long lead equipment have been placed including subsea trees, wellheads, drilling casing and completion equipment. Additionally, a letter of intent has been signed for the drilling rig to ensure timely development. The Company's internal estimate of 2P gross reserves for the Tortue field Phase 1 (2 wells) and Phase 2 (4 wells) is currently between 30 to 40 million barrels of oil equivalents, excluding contingent reserves.
"We have demonstrated the attractiveness of our model of combining proven resources, a resourceful organisation and access to production assets by bringing the Tortue field to first oil within budget and on schedule in less than 18 months. We look forward to commencing Phase 2 of development. We have also stabilised production at the Catcher field and received final acceptance from the operator," said Carl K. Arnet, the CEO of BW Offshore.
Please see attachments for the full quarterly report and presentation.
BW Offshore will host a presentation of the financial results 09:00 (CET) today at Hotel Continental in Oslo, Norway. The presentation will be given by CEO Carl K. Arnet and CFO Knut R. Sæthre.
The presentation will be broadcasted via webcast and will also be available for replay. Please visit www.bwoffshore.com for details.
For further information, please contact:
Knut R. Sæthre, CFO, +47 9111 7876
About BW Offshore:
BW Offshore is a leading provider of floating production services to the oil and gas industry. The company also participates in developing proven offshore hydrocarbon reservoirs. BW Offshore is represented in all major oil and gas regions world-wide with a fleet of 15 owned FPSOs. The company has more than 30 years of production track record, having executed 40 FPSO and FSO projects. BW Offshore is listed on the Oslo Stock Exchange.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.