Under the revised plan, estimated gross production from Ruche phase 1 is forecasted to double from 15 000 bpd to 30 000 bpd. These volumes will come in addition to the production from the Tortue field. The company has also announced that the management estimate for the Hibiscus reserves has been confirmed by the independent auditor.
The changes to the Ruche development plan follow the recent successful Hibiscus exploration well (DHIBM-1). Under the revised plan, the contemplated platform will be moved 4 km to the west to incorporate the Hibiscus resources. Ruche phase 1 will in its revised form consist of four Hibiscus production wells and two Ruche wells, all from the Gamba formation. Phase 2 of the Ruche development will develop the additional proven resources through up to 7 wells to maintain the production plateau. The change in development plan will not affect expected timing of first oil from Ruche.
“Hibiscus is proving to be a discovery of equal quality and magnitude to the Tortue field. The revised development will add significantly to our production capacity and take us above the FPSOs current nameplate of 40 000 bpd. We are confident that the license partners will support the revised development plan launched by BW Energy," said Carl K. Arnet, CEO of BW Energy.
The estimated CAPEX for the revised Ruche phase 1 incorporating the Hibiscus development has been increased to US$445 million (gross) from the original estimate of US$375 million. The estimated incremental reserves produced by Ruche phase 1 are 50 million bbl gross (management estimate). Total field operating costs including Ruche phase 1 are estimated to be approximately US$10/bbl excluding royalties and taxes at current FPSO nameplate capacity.
BW Offshore has received updated reserve report from independent auditor Netherland, Sewell & Associates Inc. (“NSAI”) which assess the Hibiscus reserves at 45.4 million bbl of oil (2P) gross. This increases the Dussafu license 1P, 2P and 3P gross 68%, 68% and 69% respectively. A detailed overview of these reserves is found in attachment 1 to this press release.
BW Energy is currently drilling four new production wells on Tortue which will be followed by one more exploration well under the current sanctioned development program. This program is expected to result in an average gross production of 16 000 bpd in 1H20 and 23 000 bpd in 2H20. The Tortue field produced gross average of approximately 11 600 bpd in 3Q19.
BW Energy has agreed options for additional two exploration wells with the drilling contractor Borr Drilling. These wells will if the options are exercised extend the current drilling campaign to 3Q20.
“We are considering using one or two of these options based on our successes to date and the number of prospects we have identified. We also expect results from ongoing seismic reprocessing by year-end which combined with information from the ongoing drilling campaign will provide valuable data points. I think it is safe to say that the Dussafu development is delivering beyond our initial expectations,” said Carl K. Arnet.
BW Energy expects to finance the Ruche phase 1 development from existing liquidity and cash-flow from operations. The company continues its preparations for a planned listing on the Oslo Stock Exchange.