BW Energy Ltd. revised down its 2020 capital spending program on the Dussafu Marin license in Gabon to $125 million, a 50% reduction from the previous $250 million. The revision is due to coronavirus (COVID-19)-related restrictions on international travel, increased market volatility, and oil price uncertainty.
Travel restrictions limiting movement to and from Gabon may affect timing of the planned DTM-7H well and a subsequent exploration well. The major contracts have termination rights under the current circumstances, and the company has decided not to exercise options for two additional exploration wells under the existing rig contract. Additionally, the company will defer the Ruche Phase 1 development (OGJ Online, Nov. 1, 2019).
Dussafu daily operations continue to perform in line with expectations with four wells (DTM-2H, DTM-3H, DTM-4H, and DTM-5H) producing to the BW Adolo FPSO at a current rate of 20,000 b/d (gross). The DTM-6H well is nearing conclusion of drilling and completion and is scheduled to be brought online by June.
Total Dussafu production for 2020 expected to be 16,000-18,500 b/d (gross) based on five producing wells, compared to 11,800 b/d on average in 2019.
BW Energy is operator in Dussafu Gabon with 73.5% interest.