BW Energy: Sale and leaseback agreement for the Jasmine Alpha rig

Summary by AI ^BETAClose X

BW Energy has secured USD 80 million in cash through a sale and leaseback agreement with Minsheng Financial Leasing Co., Ltd. for its Jasmine Alpha jack-up drilling rig, enhancing financial flexibility while retaining operational access. The company will lease the rig back for 12 months with an option to extend, and anticipates recognizing an equity gain above the rig's carrying value, reflecting its acquisition at a favorable price during the Covid-19 pandemic. This transaction, which aligns with BW Energy's infrastructure financing strategy and builds on its existing partnership with MSFL, strengthens the company's balance sheet and supports its objective to triple production by 2028.

Disclaimer*

BW Energy has signed a sale and leaseback agreement with Minsheng Financial Leasing Co., Ltd. (“MSFL”) for the Jasmine Alpha jack‑up drilling rig. BW Energy will receive an USD 80 million cash consideration, strengthening financial flexibility while maintaining continued access to the unit.

Under the agreement, BW Energy has entered into a 12‑month lease of the rig, with an option to extend for a further 12 months. The Company expects to recognise an equity gain above the carrying value of the rig, reflecting the value increase since the acquisition of the rig at a favourable price during the Covid-19 pandemic in 2020.

“We are realising substantial value from an asset acquired at a deep discount while maintaining operational availability and full strategic flexibility, including the potential future repurposing into a production platform for deployment in our development portfolio,” said Thomas Young, the CFO of BW Energy. “The transaction strengthens BW Energy’s balance sheet and demonstrates our ability to repeatedly execute flexible and competitive infrastructure financing solutions in support of our plan to triple production in 2028.”

The agreement builds on BW Energy’s established partnership with MSFL, including the ongoing financing of the Maromba B wellhead platform. The terms of the new arrangement align with the Company’s existing infrastructure financing strategy.

For further information, please contact:
Martin Seland Simensen, VP Investor Relations
ir@bwenergy.no

About BW Energy

BW Energy is a fast-growing independent oil and gas company creating value through low-risk, phased developments of proven offshore reservoirs, leveraging existing infrastructure and capital-efficient execution. The company owns and operates production, development and exploration assets in Gabon, Brazil and Namibia. Total net 2P reserves exceed 240 million barrels of oil equivalent, with a further 390 million barrels classified as 2C resources, providing a strong foundation to organically increase production from around 30 kbopd in 2025 to approximately 90 kbopd by 2028.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.