BW Group plans to separate oil, gas exploration business

BW Group on May 6 unveiled strategic restructuring plans aimed at separating its oil and gas exploration arm, BW Energy, from its maritime businesses. 

As part of the restructuring initiative, BW Group, currently holding 191.9mn shares in BW Energy, representing 74.38% of its issued and outstanding shares and voting rights, will transfer its ownership to BW Energy Holdings. This transfer will not alter the ultimate control of the business, as the BW Energy shares held by BW Group, under the trust of Andreas Sohmen-Pao, will be sold to BW Energy Holdings, a company owned and controlled by Sohmen-Pao.

“Following the completion of the mandatory offer from BW Group and subsequent share acquisition of BW Energy shares from BW Offshore Limited, this restructuring is a technical step with no impact on the business or strategy of BW Energy,” Sohmen-Pao commented. 

The restructuring process is anticipated to conclude by July 31, 2024, with the sales price for the transfer of BW Energy shares set at the carrying value recorded in BW Group's books at the time of the transaction.

BW Energy boasts a robust portfolio of assets, including a 73.5% interest in the producing Dussafu Marine license offshore Gabon, 100% interest in the Golfinho and Camarupim fields, a 76.5% interest in the BM-ES-23 block in Brazil, a 95% interest in the Maromba field in Brazil, and a 95% interest in the Kudu field in Namibia. These assets, operated by BW Energy, contribute to a total net 2P+2C reserves and resources of 580mn barrels of oil equivalents as of the beginning of 2024.