BW Energy Commits Up to US$700 Million in 2025 Capex, Targets Major Developments in Namibia and Brazil
BW Energy has allocated between US$650 million and US$700 million (approximately N$12 billion to N$12.95 billion) in capital expenditure for 2025, focusing on upstream oil and gas developments in Namibia and Brazil.
In its latest half-year report, the company confirmed plans to drill an appraisal well on Namibia’s Kudu gas field in the fourth quarter of 2025, following the successful contracting of a rig.
“At Kudu, we are preparing for the drilling of an appraisal well targeting the Kharas structure. A rig has been contracted, and drilling start-up is planned for the second half of 2025,” BW Energy stated.
The Kudu project is central to the company’s strategy of boosting production through phased, capital-efficient development.
The appraisal well is being executed in partnership with NAMCOR E&P, a subsidiary of the National Petroleum Corporation of Namibia.
BW Energy holds a 95% operating interest in the Kudu production license (PPL003), while NAMCOR E&P holds a 5% carried interest.
In parallel, BW Energy continues to advance the Kudu gas-to-power project, which is being developed in close collaboration with Namibian authorities and the national power utility.
“We continue to progress the Kudu gas-to-power project in close dialogue with Namibian authorities and the local power company,” the company said.
Expanding its presence in Namibia, BW Energy also announced the acquisition of a 20% working interest in onshore Petroleum Exploration Licence 73, through a farm-in agreement with ReconAfrica. An exploration well on this acreage is scheduled for drilling in the second half of 2025.
A significant portion of the 2025 capital budget will also be directed toward the Maromba development in Brazil, which includes:
Refurbishing a Floating Production Storage and Offloading (FPSO) vessel
Converting a rig into a wellhead platform
First oil from Maromba is expected by the end of 2027, with estimated recoverable reserves of 123 million barrels.
Additionally, BW Energy is advancing the Golfinho Boost project in Brazil, aiming to:
Increase production by 3,000 barrels per day
Add 12 million barrels of reserves
Lower operational costs
For 2025, BW Energy has maintained its production guidance at 11 to 12 million barrels, with operating expenses forecast between US$18 and US$22 (N$333 to N$407) per barrel.
General and administrative expenses are projected to range between US$19 million and US$22 million (N$351.5 million to N$407 million).
In the first half of 2025, the company reported:
Net production of 6.2 million barrels, averaging 34,200 barrels per day
Operating expenses of US$18.3 (N$338.55) per barrel
A cash position of US$192.9 million (approximately N$3.56 billion) as of the end of June
