BW Energy has announced an up to US$500 million Reserve Based Lending (RBL) facility to finance development activities and drive future production growth.
The company has a 95% interest in the Kudu field. It also holds approximately 6.6% of the ordinary shares in Reconnaissance Energy Africa Ltd. and a 20% non-operating interest in the onshore Petroleum Exploration License 73.
In Namibia, BW Energy has sanctioned the drilling of an appraisal well targeting the Kharas Prospect northwest in the Kudu licence with planned start-up drilling operations in the third quarter.
Long-lead items have been secured, and the Company is reviewing offers for rig capacity.
The development planning and concept selection for the Kudu gas-to-power project also continued with relevant stakeholders.
The company says the new facility replaces the US$200 million RBL from 2022, which was increased to US$300 million in 2023.
The funds will be used together with cash flow from operations to finance the company’s further development.
The facility has an initial commitment of US$400 million, which can be expanded with an additional US$100 million.
The senior secured long-term debt facility matures on 1 October 2030.
BW Energy’s chief finance officer, Brice Morlot, says the increased facility provides further liquidity to finance BW Energy’s development activities and drive its future production growth and long-term value creation, at a competitive interest margin.
Mauritius Commercial Bank Limited is the Facility Agent for the RBL facility, while SCB and Rand Merchant Bank are Joint Technical banks.
The syndicate further includes NedBank Group and ABSA Group (documentation bank), alongside SHELL, the offtaker of oil from the Dussafu license.
