BW Energy production falls to 21.5 thousand barrels per day in third quarter
Key Facts
BW Energy reported net production of 21.5 thousand barrels per day in the third quarter of 2026, equivalent to 2 million barrels, compared with 25.3 thousand barrels per day and 2.3 million barrels in the second quarter. The company said production in Gabon and Brazil was affected by temporary technical issues, while cargo timing also affected financial results. It posted a net loss of $0.7 million, after a profit of $43.9 million in the previous quarter. Earnings before interest, taxes, depreciation and amortization fell to $46.9 million from $140.6 million. In light of weaker production, the company lowered its 2026 production forecast to about 23 thousand barrels per day, from previous guidance of between 24 thousand and 27 thousand.
At the Dussafu field in Gabon, one well experienced a problem with its electric submersible pump, or ESP, and remained shut for most of the quarter after the need for repairs was confirmed. The company postponed the field’s planned two-week seasonal maintenance to October. At the Golfinho field in Brazil, production was affected by lower gas-lift compressor availability and the failure of a well pump. BW Energy said these technical issues were temporary, but coincided with the quarterly production decline. Production costs rose to $27.7 per barrel, from $24 per barrel in the second quarter and $22.7 per barrel in the same period of 2025.
Net sales amounted to 1.1 million barrels in the third quarter, while inventory rose to 1 million barrels at quarter-end. The company attributed the inventory build to fewer Dussafu cargoes and no Golfinho cargo during the period. It said the stored volumes would be sold in coming quarters. The difference between production of 2 million barrels and net sales of 1.1 million barrels shows the effect of cargo timing on volumes sold during the quarter. The company linked cargo timing to the impact on its financial results in a quarter when it moved from profit to loss.
BW Energy lowered its 2026 production forecast to about 23 thousand barrels per day, from the lower end of its previous range of 24 thousand to 27 thousand. The company kept its annual production cost forecast at $22 to $26 per barrel, despite recording a quarterly cost of $27.7 per barrel in the third quarter. It suspended its 2026 capital expenditure guidance, which had previously been between $600 million and $650 million. The suspension comes as the company assesses the impact of the drilling rig incident on its program in Gabon. The company did not report a change to its long-term target, but said some production forecasts for next year were still under evaluation.
The Prospector 5 drilling rig sank on October 24, 2026, while preparing for the MaBoMo Phase 2 campaign, according to BW Energy. The company said production from the MaBoMo facility was halted under standard procedures during drilling preparations, and no damage to the facility or its equipment, or harmful spill at sea, was reported. The chief executive later said production from the facility had resumed. He said the incident affects the timing of planned barrels, not the resources themselves. The company is assessing the incident’s impact on the drilling schedule and 2027 production forecasts, putting the timing of project-related barrels under review.
Over the longer term, BW Energy retained its target of producing more than 100 thousand barrels per day in 2028. It said the Maromba, Golfinho and Bourdon projects were progressing on schedule and within budget. The company is targeting first production from Bourdon in the first quarter of 2028, while the Akoum platform conversion to a wellhead platform is proceeding on schedule. It also said its strategic entry into Angola is expected to add net production of 8 thousand barrels per day starting in the first quarter of 2027, and about 19 million barrels to its net 2P reserves. At Dussafu, company assessments estimated additional recoverable volumes at about 8 to 9 million barrels in total, supporting the addition of two production wells, one of them as part of the MaBoMo Phase 2 campaign.
BW Energy said in an earlier announcement that the 10P2 appraisal well could achieve an initial gross production rate of more than 5 thousand barrels per day, with an expected payback period of less than a year. The company linked this estimate to Dussafu assessments that support two additional production wells. These prospects sit alongside the production target of more than 100 thousand barrels per day in 2028. But the Prospector 5 incident has prompted a review of the drilling schedule and 2027 forecasts, according to the company. The operational outlook for the next phase will depend on the results of the incident impact assessment and on execution of cargo and production plans in coming quarters.