BW Energy has secured a Reserve-Based Lending (RBL) facility of up to US$500 million to support its ongoing development activities and drive future production growth.
The new senior secured long-term debt facility replaces the previous US$200 million RBL established in 2022, which was increased to US$300 million in 2023.
The current facility carries an initial commitment of US$400 million, with an option to increase by an additional US$100 million, and matures on 1 October 2030.
The funds, combined with cash flow from operations, will be used to finance BW Energy’s development plans, including key activities in Namibia where the company holds a 95% interest in the Kudu gas field.
It also owns a 6.6% stake in Reconnaissance Energy Africa Ltd. and a 20% non-operating interest in the onshore Petroleum Exploration License 73.
As part of its strategy in Namibia, BW Energy has approved the drilling of an appraisal well targeting the Kharas Prospect in the northwestern section of the Kudu license.
Drilling operations are scheduled to begin in the third quarter of the year. Long-lead equipment has already been secured, and the company is currently evaluating rig offers.
Meanwhile, development planning and concept selection for the Kudu gas-to-power project is progressing in collaboration with key stakeholders.
Brice Morlot, Chief Financial Officer of BW Energy, noted that the expanded facility offers increased liquidity to support the company’s development activities, future production growth, and long-term value creation — all at a competitive interest rate.
Mauritius Commercial Bank Limited is serving as the Facility Agent for the RBL facility. SCB and Rand Merchant Bank are acting as Joint Technical Banks, while Nedbank Group and ABSA Group are part of the lending syndicate, with ABSA also serving as the documentation bank. Shell, the offtaker of oil from the Dussafu license, is also part of the syndicate.
