BW Energy Cuts 2020 Spending Further

Oslo-listed BW Energy has further reduced its 2020 capital spending plan from $115mn to $110mn due to market uncertainties created by Covid-19 pandemic, it said on August 26 in its half yearly results report. The company’s original budget was set at $250mn but was more than halved earlier this year.  

“Covid-19 pandemic and the significant decrease in oil prices have created challenges for the industry. BW Energy’s imperatives have been to safeguard people and operations, and to ensure the company’s financial robustness and -flexibility,” it said. 

The company has deferred the Ruche phase 1 development in Gabon owing to the impact of Covid-19 restrictions on operations.  Overall production at the country's Dussafu is projected to average 15,000-16,000 b/day in 2020.

BW Energy reported a $29.2mn net loss in the six months up to June 30, versus a profit $36.3mn a year earlier. In addition to Gabon, the company also has oil and gas assets in Brazil and Namibia.