Note 1\tReporting entity
BW Energy Limited (the \u2018Company\u2019) was incorporated on 22 May 2019 as an exempted company limited by shares under the laws of Bermuda and in accordance with the Bermuda Companies Act. The Company\u2019s registered office is at Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.
BW Energy Limited and its consolidated subsidiaries (hereafter \u2018BW Energy\u2019 or the \u2018Group\u2019) are engaged in oil and gas exploration and production activities.
BW Energy Limited is listed on Oslo B\u00f8rs, a stock exchange that is part of Euronext.
Basis of accounting
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU (IFRS), in accordance with the historical cost convention with some exceptions, as detailed in the accounting policies below.
The consolidated financial statements were approved by the Board of Directors on 25 February 2025.
Certain amounts in the comparable year have been restated or reclassified to conform to current year presentation. Because of rounding differences, numbers and or percentages may not add up to the total of that row or column. Figures in brackets refer to corresponding figures for 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__12": { "value": "Note 1\tReporting entityBW Energy Limited (the \u2018Company\u2019) was incorporated on 22 May 2019 as an exempted company limited by shares under the laws of Bermuda and in accordance with the Bermuda Companies Act. The Company\u2019s registered office is at Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.BW Energy Limited and its consolidated subsidiaries (hereafter \u2018BW Energy\u2019 or the \u2018Group\u2019) are engaged in oil and gas exploration and production activities.BW Energy Limited is listed on Oslo B\u00f8rs, a stock exchange that is part of Euronext.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__6": { "value": "BW Energy Limited ", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__13": { "value": "BW Energy Limited ", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__14": { "value": "BW Energy Limited ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__8": { "value": "Limited ", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__7": { "value": "Bermuda ", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__9": { "value": "Bermuda ", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__11": { "value": "Bermuda ", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__10": { "value": "Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__15": { "value": "Note 2\tMaterial accounting policies
Basis of accounting
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU (IFRS), in accordance with the historical cost convention with some exceptions, as detailed in the accounting policies below.
The consolidated financial statements were approved by the Board of Directors on 25 February 2025.
Certain amounts in the comparable year have been restated or reclassified to conform to current year presentation. Because of rounding differences, numbers and or percentages may not add up to the total of that row or column. Figures in brackets refer to corresponding figures for 2023.
Functional and presentation currency
The consolidated financial statements are presented in United States Dollars (USD), which is the functional currency of the parent company and all its subsidiaries. The functional currency is determined for each entity based on the currency within the entity\u2019s primary economic environment. All figures are in USD million if not otherwise stated.
Changes in material accounting policies
In 2024, as permitted under IAS 1, BW Energy adopted to present an analysis of operating expenses recognised in profit or loss using a classification based on their function, whereas previously they were analysed based on their nature. Classification of operating expenses by function provides more relevant and useful information and makes it more comparable to other peers in the oil and gas industry. Prior year amounts were restated to conform to new presentation
as shown in Note 5. In addition, crude oil purchases for domestic market obli-gations in Gabon are no longer included as part of operating expenses, instead these amounts are presented separately on the statement of income.
New accounting standards effective from 1 January 2024 did not have a material impact on BW Energy\u2019s financial statements.
Standards issued but not yet effective
Several standards are effective for annual periods beginning after 1 January 2025 and earlier application is permitted; however, BW Energy has not early adopted the new and amended standards in preparing these consolidated financial statements. The following standards are not expected to have a significant impact on the Group\u2019s consolidated financial statements:
\u2022Lack of Exchangeability (Amendments to IAS 21)
\u2022Classification and Measurement of Financial instruments \u2013 Amendments to IFRS 9 and IFRS 7
\u2022Annual Improvements to IFRS Accounting Standards \u2013 Volume 11
\u2022IFRS 18 Presentation and Disclosure in Financial Statements
\u2022IFRS 19 Subsidiaries without Public Accountability: Disclosures
Basis for consolidation
Subsidiaries
The subsidiaries are legal entities (including special purpose entities) controlled by BW Energy. Control is achieved when BW Energy is exposed or has rights to variable returns from its involvement with a company in which it has invested and has the ability to use its power to affect its returns from this company. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
Interests in joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
BW Energy has several joint operations involving exploration and production licences where it recognises its share of related revenues, expenses, assets, liabilities, and cash flows under the respective items in the consolidated finan-cial statements. Refer to Notes 10and 11.
Transactions eliminated on consolidation
All intercompany balances and transactions, including unrealised profits and losses arising from transactions between Group companies are eliminated.
Foreign currency transactions
Transactions in foreign currency are translated to functional currency using the exchange rate at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate, non-monetary items that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction and non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. Foreign currency differences are generally recognised in profit or loss and presented within Net financial items.
Revenue
Revenue from contracts with customers
BW Energy derives its revenue from sale of crude oil. Revenue is recognised when a customer obtains control, which ordinarily happens when title to crude oil passes at point of delivery. Revenue from production of oil in which BW Energy shares an interest with other companies is recognised based on actual volumes lifted and sold to customers during the period (the sales method).
Where the Group has lifted and sold more than the ownership interest, an accrual is recognised for the cost of the overlift. Where the Group has lifted and sold less than the ownership interest, costs are deferred for the underlift. Overlift and underlift are valued at production cost, including depreciation and presented as an adjustment to cost. Lifting imbalances are part of the operating cycle and as such classified as other current liabilities or assets.
BW Energy is obligated to pay profit oil tax on the production of crude oil from the Dussafu licence area in Gabon. Payment of profit oil tax can either be settled in cash (where the Group sells the crude oil and pays the taxes in cash) or in kind (where the government lift the crude oil it is enti-tled to). Profit oil obligation has been settled in kind since commencement of production in 2018. The profit oil tax is presented in the consolidated statement of income as a tax expense with a corresponding increase in revenues. In 2024, BW Energy changed the presentation of State profit oil and now includes it as part of petroleum revenues as shown in Note 4. Previously, State profit oil was classified as part of Other revenue.
Royalty
BW Energy has the obligation to make royalty payments in Gabon and Brazil. Royalties paid are recognised as operating expenses in the consolidated statement of income. Unpaid royalties are included in trade and other paya-bles in the consolidated statement of financial position.
Employee benefits
Share-based payment
The grant date fair value of equity settled share-based payment arrange-ments granted to employees is recognised as an employee benefits expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance condi-tions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
Taxes
BW Energy may be subject to income tax in the countries in which it operates. The Group provides for tax on profit based on the profit for financial reporting purposes, adjusted for non-taxable revenue and expenses.
Income tax expense represents the sum of tax currently payable and changes in deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognised for the future tax conse-quences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred taxes are meas-ured on the basis of the enacted or substantially enacted tax rates applicable to the respective entity of BW Energy where temporary differences exist.
A deferred tax asset is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. Previously unrecognised deferred tax asset is recognised when it has become probable that the deferred tax asset can be utilised. Similarly, the deferred tax asset is reduced if it is no longer probable that it can be utilised.
Deferred tax assets and liabilities are recognised at their nominal value, and are presented net, where netting is legally permitted.
Taxes payable and deferred taxes are recognised directly in equity to the extent that they relate to equity transactions.
Taxation under production sharing contract (PSC)
The Dussafu PSC in Gabon provides that the income tax to which the contractor is subject is deemed to have been paid to the government as part of the payment of profit oil, which can either be settled in kind (where the government lift the crude it is entitled to) or in cash (where the Group sells the crude oil and pays the taxes in cash). BW Energy presents this as an income tax expense with a corresponding increase classified as revenues. This accounting presentation does not have a net impact on the statement of comprehensive income.
Intangible assets
Exploration and evaluation assets
BW Energy uses the \u2018successful efforts\u2019 method of accounting for exploration and evaluation costs. Exploration and evaluation expenditures are capitalised when it is considered probable that future economic benefits will be gener-ated. Expenditures that fail to meet this criterion are generally expensed in the period they are incurred.
Licence acquisition costs, expenditures to drill and equip exploratory wells, seismic acquisition and interpretation costs, and other costs directly attrib-utable to the exploration and evaluation activities are classified as intangible assets. Exploration expenditures classified as intangible assets are assessed for impairment at regular intervals.
Exploration wells that discover potentially economic quantities of oil or natural gas remain capitalised as intangible assets during the evaluation phase of the discovery. Once commercial reserves have been discovered, and a development plan has been approved, the carrying value of the relevant assets is transferred to property, plant and equipment. Further expenditures for development of a field, such as drilling production wells, installation of platforms and other structures are capitalised as tangible assets.
No amortisation or depreciation is charged during the exploration and eval-uation phase.
Other intangible assets
Other intangible assets include an Intellectual Property agreement acquired by BW Energy. This intangible asset is measured at present value of future cash payments, less accumulated amortisation and any accumulated impair-ment losses. It is amortised using the straight-line method over the term of the Dussafu Production Sharing Contract.
Property, plant, and equipment
Measurement
Property, plant and equipment is measured at cost, less accumulated depre-ciation and impairment. The initial cost of an asset comprises its purchase
price or development cost, any costs directly attributable to bringing the asset into operation, the estimate of an asset retirement obligation, explo-ration costs transferred from intangible assets and, for qualifying assets, borrowing costs. Contingent consideration included in the acquisition of an asset or group of similar assets is initially measured at its fair value, with later changes in fair value other than due to the passage of time reflected in the book value of the asset or group of assets, unless the asset is impaired.
Subsequent costs are included in the asset\u2019s carrying amount, as appropriate, only when it is probable that future economic benefits associated with the item will flow to BW Energy and the cost of the item can be measured reliably.
Depreciation
Depreciation starts when an item of property, plant, and equipment is ready for use as intended by management.
Capitalised oil and gas assets including exploration expenditures trans-ferred from intangible assets, drilling of production wells, other development expenditures related to construction and installation of platforms and pipelines, and asset retirement obligations are depreciated using the units of production method (UoP) based on proved and probable reserves (2P) expected to be recovered from the area during the concession or contract period. In certain instances, when realisation of probable reserves requires additional future investments, the approved future capital expenditures are added to depreciation base to better align the costs with the 2P reserves.
Other assets, such as office equipment, furniture and fixtures, and cars are depreciated using the straight-line method over 3-5 years.
Impairment
Non-current assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such indication exists, the asset\u2019s recoverable amount is estimated based on the value in use or fair value less cost of disposal. An impairment loss is recognised for the difference between the asset\u2019s carrying amount and its recoverable amount. Assets are grouped into cash-generating
units at the lowest levels for which there are separate identifiable cash flows. For oil and gas assets, this is typically the licence area or a field.
For exploration properties, the impairment assessment is based on whether or not the exploration rights have expired or will expire in the near future, and whether the Group has plans for future evaluation of the area.
Borrowing costs
Borrowing costs directly attributable to development of oil and gas assets, which take a substantial period to get ready for their intended use, are added to the cost of the asset until the asset is ready for its intended use. Borrowing costs consist of loan interest expense and lease interest expense for qual-ifying assets.
Financial instruments
The Group\u2019s financial assets and liabilities comprise listed equity investment, derivatives (assets and liabilities), receivables, cash and cash equivalents, payables, other current liabilities and non-current liabilities. The classification of financial assets and liabilities at initial recognition depends on the financial instrument\u2019s contractual cash flow characteristics and BW Energy\u2019s business model for managing them. The Group has classified its financial instruments into the following categories of financial assets and liabilities:
\u2022Financial assets measured at amortised cost
\u2022Financial assets at fair value through profit or loss (FVTPL)
\u2022Financial assets at fair value through other comprehensive income (FVOCI)
\u2022Financial liabilities at fair value through profit or loss
\u2022Financial liabilities measured at amortised cost
Financial assets and liabilities at amortised cost
The Group\u2019s financial assets and liabilities at amortised cost include trade and other receivables, other non-current assets, trade payables and other current and non-current liabilities.
Trade receivables that do not contain a significant financing component are measured at the transaction price determined under IFRS 15 Revenue from Contracts with Customers.
All borrowings are initially recognised at transaction price, which equals the fair value of the amount received net of transaction costs directly related to the loan or issuance of debt. Subsequently, interest-bearing borrowings are valued at amortised cost using the effective interest method. Interest expense and amortisation of transaction costs are recognised in the consol-idated statement of income, as well as any gain or loss on derecognition.
Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include oil price hedging contracts, where the fair value changes are included in Other income/(Loss) (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Financial assets at fair value through other comprehensive income
BW Energy designated its investment in equity securities of ReconAfrica at fair value through other comprehensive income because these equity secu-rities represent investments that are intended to be held for the long term for strategic purposes.
Inventories
Inventories are valued at the lower of cost or net realisable value. Crude oil inventory is valued at production cost including depreciation. Cost of mate-rials and consumables is determined by the weighted average cost method, and cost of fuel oil is determined by \u2018first-in-first-out\u2019 (FIFO) method. The cost of inventories comprises the purchase price, import duties and other taxes, transport, handling, and other costs directly attributable to the acquisition of finished goods and materials.
Provisions and contingent assets and liabilities
Provisions are recognised when BW Energy has a legal or constructive obligation resulting from past events, when it is likely that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where BW Energy expects a provision to be
reimbursed, for example under a contract with another entity, the reimburse-ment is recognised as a separate asset, but only when the reimbursement is virtually certain.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in the provision due to passage of time is recognised as accretion expense.
Contingent liabilities are not recognised in the consolidated financial state-ments, except for certain liabilities related to acquisition of Golfinho and Camarupim Clusters in Brazil. Contingent liabilities are disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote.
Contingent assets are not recognised in the consolidated financial state-ments but are disclosed if there is a certain probability that the benefit will be added to BW Energy.
Asset retirement obligations (ARO)
Provisions for asset retirement obligations are recognised when BW Energy has an obligation to plug and abandon an exploration or production well, dismantle and remove a production platform or an FPSO, and when a reliable estimate of the liability can be made.
Asset retirement obligations are recognised based on the present value of the estimated cash outflows to be incurred to conduct abandonment activities, considering relevant risks and uncertainties. The corresponding amount is recognised to the related property, plant, and equipment in the consolidated statement of financial position and depreciated using the same depreciation method used for the asset.
The discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of the underlying cash flows.
Asset retirement obligations are assessed annually to incorporate the annual revisions to estimated retirement costs, discount rate and retirement date
estimates. Changes in estimates are recognised as an adjustment to the provision and the corresponding property, plant and equipment.
When an asset has reached the end of its useful life, all subsequent changes to the ARO provision are recognised when they occur in operating expenses in the consolidated statement of income.
Leases
A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the date at which the underlying asset is made available to BW Energy, the present value of future lease payments, including extension options considered reasonably certain to be exercised, is recognised as a lease liability. The present value is calculated using BW Energy\u2019s incremental borrowing rate. A corresponding right-of-use asset is recognised, including lease payments and direct costs incurred at the commencement date. After the commencement date, the lease liabilities are increased to reflect the accretion of interest and reduced for the lease payments made. All right-of-use assets are depreciated using the straight-line method from commencement date to end of lease term, with the exception of the FPSO right-of-use asset, which is depreciated using the units-of-production method.
Certain lease contracts involve additional services and non-lease components, such as crew cost, maintenance, supplies, and other items. BW\u00a0Energy has elected to not separate non-lease components for most asset classes when vendor contracts do not separately state payments for these services. As a result, these costs are reflected as part of the lease liability and right-of-use asset.
The right-of-use asset and lease liability for the leases used in joint venture operations, where BW Energy is the operator, are recognised on a gross basis as BW Energy is the primary obligor. The share of lease payments paid by joint venture partners through the joint interest billings is recognised as other income on the statement of income.
Lease payments for short-term leases with a term of 12 months or less and the low-value leases are expensed.
Basis of accounting
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU (IFRS), in accordance with the historical cost convention with some exceptions, as detailed in the accounting policies below.
The consolidated financial statements were approved by the Board of Directors on 25 February 2025.
Certain amounts in the comparable year have been restated or reclassified to conform to current year presentation. Because of rounding differences, numbers and or percentages may not add up to the total of that row or column. Figures in brackets refer to corresponding figures for 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__18": { "value": "Basis of accounting
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU (IFRS), in accordance with the historical cost convention with some exceptions, as detailed in the accounting policies below.
The consolidated financial statements were approved by the Board of Directors on 25 February 2025.
Certain amounts in the comparable year have been restated or reclassified to conform to current year presentation. Because of rounding differences, numbers and or percentages may not add up to the total of that row or column. Figures in brackets refer to corresponding figures for 2023.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__19": { "value": "Basis of accounting
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU (IFRS), in accordance with the historical cost convention with some exceptions, as detailed in the accounting policies below.
The consolidated financial statements were approved by the Board of Directors on 25 February 2025.
Certain amounts in the comparable year have been restated or reclassified to conform to current year presentation. Because of rounding differences, numbers and or percentages may not add up to the total of that row or column. Figures in brackets refer to corresponding figures for 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__20": { "value": "Functional and presentation currency
The consolidated financial statements are presented in United States Dollars (USD), which is the functional currency of the parent company and all its subsidiaries. The functional currency is determined for each entity based on the currency within the entity\u2019s primary economic environment. All figures are in USD million if not otherwise stated.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__21": { "value": "Changes in material accounting policies
In 2024, as permitted under IAS 1, BW Energy adopted to present an analysis of operating expenses recognised in profit or loss using a classification based on their function, whereas previously they were analysed based on their nature. Classification of operating expenses by function provides more relevant and useful information and makes it more comparable to other peers in the oil and gas industry. Prior year amounts were restated to conform to new presentation
as shown in Note 5. In addition, crude oil purchases for domestic market obli-gations in Gabon are no longer included as part of operating expenses, instead these amounts are presented separately on the statement of income.
New accounting standards effective from 1 January 2024 did not have a material impact on BW Energy\u2019s financial statements.
Standards issued but not yet effective
Several standards are effective for annual periods beginning after 1 January 2025 and earlier application is permitted; however, BW Energy has not early adopted the new and amended standards in preparing these consolidated financial statements. The following standards are not expected to have a significant impact on the Group\u2019s consolidated financial statements:
\u2022Lack of Exchangeability (Amendments to IAS 21)
\u2022Classification and Measurement of Financial instruments \u2013 Amendments to IFRS 9 and IFRS 7
\u2022Annual Improvements to IFRS Accounting Standards \u2013 Volume 11
\u2022IFRS 18 Presentation and Disclosure in Financial Statements
\u2022IFRS 19 Subsidiaries without Public Accountability: Disclosures
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__22": { "value": "Basis for consolidation
Subsidiaries
The subsidiaries are legal entities (including special purpose entities) controlled by BW Energy. Control is achieved when BW Energy is exposed or has rights to variable returns from its involvement with a company in which it has invested and has the ability to use its power to affect its returns from this company. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
Interests in joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
BW Energy has several joint operations involving exploration and production licences where it recognises its share of related revenues, expenses, assets, liabilities, and cash flows under the respective items in the consolidated finan-cial statements. Refer to Notes 10and 11.
Transactions eliminated on consolidation
All intercompany balances and transactions, including unrealised profits and losses arising from transactions between Group companies are eliminated.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__23": { "value": "Subsidiaries
The subsidiaries are legal entities (including special purpose entities) controlled by BW Energy. Control is achieved when BW Energy is exposed or has rights to variable returns from its involvement with a company in which it has invested and has the ability to use its power to affect its returns from this company. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__24": { "value": "Interests in joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
BW Energy has several joint operations involving exploration and production licences where it recognises its share of related revenues, expenses, assets, liabilities, and cash flows under the respective items in the consolidated finan-cial statements. Refer to Notes 10and 11.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__25": { "value": "Interests in joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
BW Energy has several joint operations involving exploration and production licences where it recognises its share of related revenues, expenses, assets, liabilities, and cash flows under the respective items in the consolidated finan-cial statements. Refer to Notes 10and 11.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__26": { "value": "Foreign currency transactions
Transactions in foreign currency are translated to functional currency using the exchange rate at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate, non-monetary items that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction and non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. Foreign currency differences are generally recognised in profit or loss and presented within Net financial items.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__27": { "value": "Revenue
Revenue from contracts with customers
BW Energy derives its revenue from sale of crude oil. Revenue is recognised when a customer obtains control, which ordinarily happens when title to crude oil passes at point of delivery. Revenue from production of oil in which BW Energy shares an interest with other companies is recognised based on actual volumes lifted and sold to customers during the period (the sales method).
Where the Group has lifted and sold more than the ownership interest, an accrual is recognised for the cost of the overlift. Where the Group has lifted and sold less than the ownership interest, costs are deferred for the underlift. Overlift and underlift are valued at production cost, including depreciation and presented as an adjustment to cost. Lifting imbalances are part of the operating cycle and as such classified as other current liabilities or assets.
BW Energy is obligated to pay profit oil tax on the production of crude oil from the Dussafu licence area in Gabon. Payment of profit oil tax can either be settled in cash (where the Group sells the crude oil and pays the taxes in cash) or in kind (where the government lift the crude oil it is enti-tled to). Profit oil obligation has been settled in kind since commencement of production in 2018. The profit oil tax is presented in the consolidated statement of income as a tax expense with a corresponding increase in revenues. In 2024, BW Energy changed the presentation of State profit oil and now includes it as part of petroleum revenues as shown in Note 4. Previously, State profit oil was classified as part of Other revenue.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__28": { "value": "Royalty
BW Energy has the obligation to make royalty payments in Gabon and Brazil. Royalties paid are recognised as operating expenses in the consolidated statement of income. Unpaid royalties are included in trade and other paya-bles in the consolidated statement of financial position.
", "dimensions": { "concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__29": { "value": "Employee benefits
Share-based payment
The grant date fair value of equity settled share-based payment arrange-ments granted to employees is recognised as an employee benefits expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance condi-tions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__30": { "value": "Employee benefits
Share-based payment
The grant date fair value of equity settled share-based payment arrange-ments granted to employees is recognised as an employee benefits expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance condi-tions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__31": { "value": "Taxes
BW Energy may be subject to income tax in the countries in which it operates. The Group provides for tax on profit based on the profit for financial reporting purposes, adjusted for non-taxable revenue and expenses.
Income tax expense represents the sum of tax currently payable and changes in deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognised for the future tax conse-quences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred taxes are meas-ured on the basis of the enacted or substantially enacted tax rates applicable to the respective entity of BW Energy where temporary differences exist.
A deferred tax asset is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. Previously unrecognised deferred tax asset is recognised when it has become probable that the deferred tax asset can be utilised. Similarly, the deferred tax asset is reduced if it is no longer probable that it can be utilised.
Deferred tax assets and liabilities are recognised at their nominal value, and are presented net, where netting is legally permitted.
Taxes payable and deferred taxes are recognised directly in equity to the extent that they relate to equity transactions.
Taxation under production sharing contract (PSC)
The Dussafu PSC in Gabon provides that the income tax to which the contractor is subject is deemed to have been paid to the government as part of the payment of profit oil, which can either be settled in kind (where the government lift the crude it is entitled to) or in cash (where the Group sells the crude oil and pays the taxes in cash). BW Energy presents this as an income tax expense with a corresponding increase classified as revenues. This accounting presentation does not have a net impact on the statement of comprehensive income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__32": { "value": "Taxes
BW Energy may be subject to income tax in the countries in which it operates. The Group provides for tax on profit based on the profit for financial reporting purposes, adjusted for non-taxable revenue and expenses.
Income tax expense represents the sum of tax currently payable and changes in deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognised for the future tax conse-quences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred taxes are meas-ured on the basis of the enacted or substantially enacted tax rates applicable to the respective entity of BW Energy where temporary differences exist.
A deferred tax asset is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. Previously unrecognised deferred tax asset is recognised when it has become probable that the deferred tax asset can be utilised. Similarly, the deferred tax asset is reduced if it is no longer probable that it can be utilised.
Deferred tax assets and liabilities are recognised at their nominal value, and are presented net, where netting is legally permitted.
Taxes payable and deferred taxes are recognised directly in equity to the extent that they relate to equity transactions.
Taxation under production sharing contract (PSC)
The Dussafu PSC in Gabon provides that the income tax to which the contractor is subject is deemed to have been paid to the government as part of the payment of profit oil, which can either be settled in kind (where the government lift the crude it is entitled to) or in cash (where the Group sells the crude oil and pays the taxes in cash). BW Energy presents this as an income tax expense with a corresponding increase classified as revenues. This accounting presentation does not have a net impact on the statement of comprehensive income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__33": { "value": "Intangible assets
Exploration and evaluation assets
BW Energy uses the \u2018successful efforts\u2019 method of accounting for exploration and evaluation costs. Exploration and evaluation expenditures are capitalised when it is considered probable that future economic benefits will be gener-ated. Expenditures that fail to meet this criterion are generally expensed in the period they are incurred.
Licence acquisition costs, expenditures to drill and equip exploratory wells, seismic acquisition and interpretation costs, and other costs directly attrib-utable to the exploration and evaluation activities are classified as intangible assets. Exploration expenditures classified as intangible assets are assessed for impairment at regular intervals.
Exploration wells that discover potentially economic quantities of oil or natural gas remain capitalised as intangible assets during the evaluation phase of the discovery. Once commercial reserves have been discovered, and a development plan has been approved, the carrying value of the relevant assets is transferred to property, plant and equipment. Further expenditures for development of a field, such as drilling production wells, installation of platforms and other structures are capitalised as tangible assets.
No amortisation or depreciation is charged during the exploration and eval-uation phase.
Other intangible assets
Other intangible assets include an Intellectual Property agreement acquired by BW Energy. This intangible asset is measured at present value of future cash payments, less accumulated amortisation and any accumulated impair-ment losses. It is amortised using the straight-line method over the term of the Dussafu Production Sharing Contract.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__34": { "value": "Exploration and evaluation assets
BW Energy uses the \u2018successful efforts\u2019 method of accounting for exploration and evaluation costs. Exploration and evaluation expenditures are capitalised when it is considered probable that future economic benefits will be gener-ated. Expenditures that fail to meet this criterion are generally expensed in the period they are incurred.
Licence acquisition costs, expenditures to drill and equip exploratory wells, seismic acquisition and interpretation costs, and other costs directly attrib-utable to the exploration and evaluation activities are classified as intangible assets. Exploration expenditures classified as intangible assets are assessed for impairment at regular intervals.
Exploration wells that discover potentially economic quantities of oil or natural gas remain capitalised as intangible assets during the evaluation phase of the discovery. Once commercial reserves have been discovered, and a development plan has been approved, the carrying value of the relevant assets is transferred to property, plant and equipment. Further expenditures for development of a field, such as drilling production wells, installation of platforms and other structures are capitalised as tangible assets.
No amortisation or depreciation is charged during the exploration and eval-uation phase.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExplorationAndEvaluationExpenditures", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__35": { "value": "Property, plant, and equipment
Measurement
Property, plant and equipment is measured at cost, less accumulated depre-ciation and impairment. The initial cost of an asset comprises its purchase
price or development cost, any costs directly attributable to bringing the asset into operation, the estimate of an asset retirement obligation, explo-ration costs transferred from intangible assets and, for qualifying assets, borrowing costs. Contingent consideration included in the acquisition of an asset or group of similar assets is initially measured at its fair value, with later changes in fair value other than due to the passage of time reflected in the book value of the asset or group of assets, unless the asset is impaired.
Subsequent costs are included in the asset\u2019s carrying amount, as appropriate, only when it is probable that future economic benefits associated with the item will flow to BW Energy and the cost of the item can be measured reliably.
Depreciation
Depreciation starts when an item of property, plant, and equipment is ready for use as intended by management.
Capitalised oil and gas assets including exploration expenditures trans-ferred from intangible assets, drilling of production wells, other development expenditures related to construction and installation of platforms and pipelines, and asset retirement obligations are depreciated using the units of production method (UoP) based on proved and probable reserves (2P) expected to be recovered from the area during the concession or contract period. In certain instances, when realisation of probable reserves requires additional future investments, the approved future capital expenditures are added to depreciation base to better align the costs with the 2P reserves.
Other assets, such as office equipment, furniture and fixtures, and cars are depreciated using the straight-line method over 3-5 years.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__36": { "value": "Depreciation
Depreciation starts when an item of property, plant, and equipment is ready for use as intended by management.
Capitalised oil and gas assets including exploration expenditures trans-ferred from intangible assets, drilling of production wells, other development expenditures related to construction and installation of platforms and pipelines, and asset retirement obligations are depreciated using the units of production method (UoP) based on proved and probable reserves (2P) expected to be recovered from the area during the concession or contract period. In certain instances, when realisation of probable reserves requires additional future investments, the approved future capital expenditures are added to depreciation base to better align the costs with the 2P reserves.
Other assets, such as office equipment, furniture and fixtures, and cars are depreciated using the straight-line method over 3-5 years.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__37": { "value": "Impairment
Non-current assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such indication exists, the asset\u2019s recoverable amount is estimated based on the value in use or fair value less cost of disposal. An impairment loss is recognised for the difference between the asset\u2019s carrying amount and its recoverable amount. Assets are grouped into cash-generating
units at the lowest levels for which there are separate identifiable cash flows. For oil and gas assets, this is typically the licence area or a field.
For exploration properties, the impairment assessment is based on whether or not the exploration rights have expired or will expire in the near future, and whether the Group has plans for future evaluation of the area.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__39": { "value": "Impairment
Non-current assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such indication exists, the asset\u2019s recoverable amount is estimated based on the value in use or fair value less cost of disposal. An impairment loss is recognised for the difference between the asset\u2019s carrying amount and its recoverable amount. Assets are grouped into cash-generating
units at the lowest levels for which there are separate identifiable cash flows. For oil and gas assets, this is typically the licence area or a field.
For exploration properties, the impairment assessment is based on whether or not the exploration rights have expired or will expire in the near future, and whether the Group has plans for future evaluation of the area.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__38": { "value": "Non-current assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such indication exists, the asset\u2019s recoverable amount is estimated based on the value in use or fair value less cost of disposal. An impairment loss is recognised for the difference between the asset\u2019s carrying amount and its recoverable amount. Assets are grouped into cash-generating
units at the lowest levels for which there are separate identifiable cash flows. For oil and gas assets, this is typically the licence area or a field.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__40": { "value": "Borrowing costs
Borrowing costs directly attributable to development of oil and gas assets, which take a substantial period to get ready for their intended use, are added to the cost of the asset until the asset is ready for its intended use. Borrowing costs consist of loan interest expense and lease interest expense for qual-ifying assets.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__41": { "value": "Financial instruments
The Group\u2019s financial assets and liabilities comprise listed equity investment, derivatives (assets and liabilities), receivables, cash and cash equivalents, payables, other current liabilities and non-current liabilities. The classification of financial assets and liabilities at initial recognition depends on the financial instrument\u2019s contractual cash flow characteristics and BW Energy\u2019s business model for managing them. The Group has classified its financial instruments into the following categories of financial assets and liabilities:
\u2022Financial assets measured at amortised cost
\u2022Financial assets at fair value through profit or loss (FVTPL)
\u2022Financial assets at fair value through other comprehensive income (FVOCI)
\u2022Financial liabilities at fair value through profit or loss
\u2022Financial liabilities measured at amortised cost
Financial assets and liabilities at amortised cost
The Group\u2019s financial assets and liabilities at amortised cost include trade and other receivables, other non-current assets, trade payables and other current and non-current liabilities.
Trade receivables that do not contain a significant financing component are measured at the transaction price determined under IFRS 15 Revenue from Contracts with Customers.
All borrowings are initially recognised at transaction price, which equals the fair value of the amount received net of transaction costs directly related to the loan or issuance of debt. Subsequently, interest-bearing borrowings are valued at amortised cost using the effective interest method. Interest expense and amortisation of transaction costs are recognised in the consol-idated statement of income, as well as any gain or loss on derecognition.
Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include oil price hedging contracts, where the fair value changes are included in Other income/(Loss) (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Financial assets at fair value through other comprehensive income
BW Energy designated its investment in equity securities of ReconAfrica at fair value through other comprehensive income because these equity secu-rities represent investments that are intended to be held for the long term for strategic purposes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__42-1": { "value": "Financial assets and liabilities at amortised cost
The Group\u2019s financial assets and liabilities at amortised cost include trade and other receivables, other non-current assets, trade payables and other current and non-current liabilities.
Trade receivables that do not contain a significant financing component are measured at the transaction price determined under IFRS 15 Revenue from Contracts with Customers.
All borrowings are initially recognised at transaction price, which equals the fair value of the amount received net of transaction costs directly related to the loan or issuance of debt. Subsequently, interest-bearing borrowings are valued at amortised cost using the effective interest method. Interest expense and amortisation of transaction costs are recognised in the consol-idated statement of income, as well as any gain or loss on derecognition.
Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include oil price hedging contracts, where the fair value changes are included in Other income/(Loss) (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Financial assets at fair value through other comprehensive income
BW Energy designated its investment in equity securities of ReconAfrica at fair value through other comprehensive income because these equity secu-rities represent investments that are intended to be held for the long term for strategic purposes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__43-1": { "value": "Financial assets and liabilities at amortised cost
The Group\u2019s financial assets and liabilities at amortised cost include trade and other receivables, other non-current assets, trade payables and other current and non-current liabilities.
Trade receivables that do not contain a significant financing component are measured at the transaction price determined under IFRS 15 Revenue from Contracts with Customers.
All borrowings are initially recognised at transaction price, which equals the fair value of the amount received net of transaction costs directly related to the loan or issuance of debt. Subsequently, interest-bearing borrowings are valued at amortised cost using the effective interest method. Interest expense and amortisation of transaction costs are recognised in the consol-idated statement of income, as well as any gain or loss on derecognition.
Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include oil price hedging contracts, where the fair value changes are included in Other income/(Loss) (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__44": { "value": "Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include oil price hedging contracts, where the fair value changes are included in Other income/(Loss) (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__48": { "value": "Inventories
Inventories are valued at the lower of cost or net realisable value. Crude oil inventory is valued at production cost including depreciation. Cost of mate-rials and consumables is determined by the weighted average cost method, and cost of fuel oil is determined by \u2018first-in-first-out\u2019 (FIFO) method. The cost of inventories comprises the purchase price, import duties and other taxes, transport, handling, and other costs directly attributable to the acquisition of finished goods and materials.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__49-1": { "value": "Provisions and contingent assets and liabilities
Provisions are recognised when BW Energy has a legal or constructive obligation resulting from past events, when it is likely that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where BW Energy expects a provision to be
reimbursed, for example under a contract with another entity, the reimburse-ment is recognised as a separate asset, but only when the reimbursement is virtually certain.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in the provision due to passage of time is recognised as accretion expense.
Contingent liabilities are not recognised in the consolidated financial state-ments, except for certain liabilities related to acquisition of Golfinho and Camarupim Clusters in Brazil. Contingent liabilities are disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote.
Contingent assets are not recognised in the consolidated financial state-ments but are disclosed if there is a certain probability that the benefit will be added to BW Energy.
Asset retirement obligations (ARO)
Provisions for asset retirement obligations are recognised when BW Energy has an obligation to plug and abandon an exploration or production well, dismantle and remove a production platform or an FPSO, and when a reliable estimate of the liability can be made.
Asset retirement obligations are recognised based on the present value of the estimated cash outflows to be incurred to conduct abandonment activities, considering relevant risks and uncertainties. The corresponding amount is recognised to the related property, plant, and equipment in the consolidated statement of financial position and depreciated using the same depreciation method used for the asset.
The discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of the underlying cash flows.
Asset retirement obligations are assessed annually to incorporate the annual revisions to estimated retirement costs, discount rate and retirement date
estimates. Changes in estimates are recognised as an adjustment to the provision and the corresponding property, plant and equipment.
When an asset has reached the end of its useful life, all subsequent changes to the ARO provision are recognised when they occur in operating expenses in the consolidated statement of income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__50": { "value": "Provisions and contingent assets and liabilities
Provisions are recognised when BW Energy has a legal or constructive obligation resulting from past events, when it is likely that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where BW Energy expects a provision to be
reimbursed, for example under a contract with another entity, the reimburse-ment is recognised as a separate asset, but only when the reimbursement is virtually certain.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in the provision due to passage of time is recognised as accretion expense.
Contingent liabilities are not recognised in the consolidated financial state-ments, except for certain liabilities related to acquisition of Golfinho and Camarupim Clusters in Brazil. Contingent liabilities are disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote.
Contingent assets are not recognised in the consolidated financial state-ments but are disclosed if there is a certain probability that the benefit will be added to BW Energy.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__52": { "value": "Leases
A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the date at which the underlying asset is made available to BW Energy, the present value of future lease payments, including extension options considered reasonably certain to be exercised, is recognised as a lease liability. The present value is calculated using BW Energy\u2019s incremental borrowing rate. A corresponding right-of-use asset is recognised, including lease payments and direct costs incurred at the commencement date. After the commencement date, the lease liabilities are increased to reflect the accretion of interest and reduced for the lease payments made. All right-of-use assets are depreciated using the straight-line method from commencement date to end of lease term, with the exception of the FPSO right-of-use asset, which is depreciated using the units-of-production method.
Certain lease contracts involve additional services and non-lease components, such as crew cost, maintenance, supplies, and other items. BW\u00a0Energy has elected to not separate non-lease components for most asset classes when vendor contracts do not separately state payments for these services. As a result, these costs are reflected as part of the lease liability and right-of-use asset.
The right-of-use asset and lease liability for the leases used in joint venture operations, where BW Energy is the operator, are recognised on a gross basis as BW Energy is the primary obligor. The share of lease payments paid by joint venture partners through the joint interest billings is recognised as other income on the statement of income.
Lease payments for short-term leases with a term of 12 months or less and the low-value leases are expensed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__53": { "value": "Note 3\tSignificant accounting estimates and judgements
The preparation of the consolidated financial statements requires use of estimates and assumptions. The following is a summary of the assessments, estimates, and assumptions made that could have a material effect on the consolidated financial statements. Actual results may differ from these estimates.
Reserves and resources estimate
Hydrocarbon reserves are estimates of the hydrocarbons that can be economically and legally extracted from the Group\u2019s oil and gas properties. BW Energy estimates its commercial reserves and resources with support from an independent third party. Commercial reserves are determined using estimates of oil and gas in place, recovery factors and commodity prices. Forecasted oil and gas prices are based on available market data. BW Energy used oil and gas prices based on price deck from an external industry consultant. Future development costs are estimated using assumptions as to the infrastructure required to produce the commercial reserves, whether a platform is needed, number of wells, the cost of such wells and other capital costs. The proved and probable reserves (2P) are used for depreciation of oil and gas assets by applying the units of production method. Changes to the reserves estimates might have a material impact on depreciation and impairment of non-current assets. Changes in reserve estimates might also impact economic cut-off of a field, which can significantly impact the timing of assumed decommissioning and removal activities.
Asset retirement obligations
Asset retirement costs will be incurred by BW Energy at the end of the operating life of its oil and gas facilities and properties. The Group assesses its retirement obligations at each reporting date. The ultimate asset retirement costs are uncertain, and cost estimates can vary in response to many factors, including changes to relevant legal requirements, the emergence of new restoration techniques or experience at other production sites. The expected timing, extent, and amount of expenditure can also change, for example in response to changes in reserves or changes in laws and regulations or their interpretation. Therefore, significant estimates and assumptions, including estimated retirement costs and estimated retirement dates, are made in determining the provision for asset retirement obligations. As a result, there could be significant adjustments to the provisions which would affect future financial results. The provision at the reporting date represents management\u2019s best estimate of the present value of the future asset retirement costs required. The discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of the underlying cash flows.
Impairment (reversal) of non-current assets
Management must determine whether there are circumstances indicating a possible impairment of BW Energy\u2019s non-current assets. The estimation of the recoverable amount for the oil and gas assets includes assumptions of expected future cash flows and future market conditions, including entitlement production, future oil and gas prices, asset specific risk factors, expected reserves and the date of expiration of the licences.
All impairment (reversal) assessment calculations demand a high degree of estimation. Management must make complex assessments of the expected cash flows arising from such assets and the selection of discount rates. Changes to these estimates could have significant impact on the impairment (reversals) recognised and future changes may lead to additional impairments or to reversals of previously recognised impairments. At 31 December 2024, BW Energy does not have any prior year impairments that could be reversed in future periods.
Note 4\tRevenues
BW Energy generates its revenue from contracts with customers from the sale of crude oil to three customers (three customers in 2023). Revenue originates in Gabon and Brazil. The Group currently operates as a single segment.
USD MILLION | 2024 | 2023 |
Petroleum revenues: | ||
Sales of crude oil | 678.6 | 426.5 |
Domestic market obligation deliveries | 33.6 | 16.7 |
Revenues from contracts with customers | 712.2 | 443.2 |
State profit oil | 71.6 | 45.7 |
Total petroleum revenues | 783.9 | 488.9 |
Other income: | ||
Realised gain/(loss) on oil derivatives | 0.9 | 0.2 |
Unrealised gain/(loss) on oil derivatives | (0.9) | 6.8 |
Other income | 11.3 | 11.4 |
Total other income | 11.3 | 18.4 |
Realised and unrealised gain/loss on oil derivatives reflect the changes in fair value of derivative financial instruments. Refer to Note 23for further details regarding commodity derivatives.
Other income is primarily comprised of the joint venture partners\u2019 share of lease payments for the right-of-use assets used in joint operations in Gabon.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__55": { "value": "Note 4\tRevenues
BW Energy generates its revenue from contracts with customers from the sale of crude oil to three customers (three customers in 2023). Revenue originates in Gabon and Brazil. The Group currently operates as a single segment.
USD MILLION
2024
2023
Petroleum revenues:
Sales of crude oil
678.6
426.5
Domestic market obligation deliveries
33.6
16.7
Revenues from contracts with customers
712.2
443.2
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__56": { "value": "Note 5\tOperating expenses
USD MILLION | 2024 | 2023 |
Production expenses | 248.1 | 183.9 |
Royalty expense | 50.5 | 29.4 |
Crude oil inventory adjustment | (22.9) | (3.6) |
General and administrative expenses | 22.8 | 13.8 |
Other expenses | 4.6 | 25.4 |
Total operating expenses | 303.3 | 248.9 |
Note 5\tOperating expenses
USD MILLION | 2024 | 2023 |
Production expenses | 248.1 | 183.9 |
Royalty expense | 50.5 | 29.4 |
Crude oil inventory adjustment | (22.9) | (3.6) |
General and administrative expenses | 22.8 | 13.8 |
Other expenses | 4.6 | 25.4 |
Total operating expenses | 303.3 | 248.9 |
Note 5\tOperating expenses
USD MILLION | 2024 | 2023 |
Production expenses | 248.1 | 183.9 |
Royalty expense | 50.5 | 29.4 |
Crude oil inventory adjustment | (22.9) | (3.6) |
General and administrative expenses | 22.8 | 13.8 |
Other expenses | 4.6 | 25.4 |
Total operating expenses | 303.3 | 248.9 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2024 | 2023 |
Payroll expenses | 35.5 | 29.7 |
Social security tax | 7.0 | 5.1 |
Retirement plans | 0.9 | 0.6 |
Other personnel costs | 8.9 | 4.5 |
Share-based payment | 1.5 | 1.3 |
Total employee benefit expenses | 53.7 | 41.2 |
Average number of employees | 251 | 188 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of RSUs | Number of shares |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | - | 4,000,259 |
2023 | 2,702,632 | 1,560,424 | 93,879 | 209,118 | 895,500 | - | 3,981,139 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO) and Chief Strategy Officer (CSO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2024 | 455,000 |
2023 | 413,333 |
The compensation for members of the Board of Directors for the period from May 2024 to May 2025 will be decided at the annual general meeting in May 2025.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The maximum potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and RSUs under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis.
At 31 December 2024, a total of 5,741,734 shares are outstanding, of which 5,670,013 shares are allocated to options that will give the holder the right to acquire one BW Energy share and 71,721 shares are allocated to restricted share units (\u2018RSUs\u2019) providing the holder shares at each vesting event. The options have a vesting period of three years, followed by a three-year exercise period and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2024, the Board of Directors decided to settle 186,272 RSUs in cash, at the closing share price as traded on the stock exchange on the settlement date.
The key terms and conditions related to the grants are summarised below. All options are to be settled by the physical delivery of shares.
Grant date | Number of instruments | Vesting conditions | Contractual life of options |
On 7 July 2021 | 1,289,993 | Vesting period of three years, followed by a three year exercise period | 6 years |
On 28 February 2022 | 1,000,000 | Same as above | 6 years |
On 6 July 2022 | 1,529,000 | Same as above | 6 years |
On 7 July 2023 | 1,414,400 | Same as above | 6 years |
On 6 August 2024 | 1,150,000 | Same as above | 6 years |
Total share options | 6,383,393 |
In 2024 a total of 10 (2023:19) BW Energy employees were invited to participate in the programme.
The strike price of the options is calculated based on the volume weighted average share price five trading days prior to grant date, plus a premium of 15.76% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is measured using the Black-Scholes formula. The inputs used in the measurement of the fair value at grant date were as follows:
2024 | 2023 | |
Fair value at grant date (NOK) | 10.41 | 10.62 |
Share price at grant date (NOK) | 30.65 | 27.10 |
Exercise price (NOK) | 36.41 | 31.26 |
Expected volatility (weighted average) | 46% | 51% |
Expected life | 4 years | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.232% | 3.891% |
Expected volatility is based on an evaluation of the historical volatility of the Company\u2019s share price particularly over the historical period equal to the expected term, adjusted for extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are as follows:
2024 | 2023 | |||
Options | Number of options | Weighted -average exercise price (NOK) | Number of options | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 4,670,400 | 30.07 | 3,516,000 | 29.61 |
Terminated during the year | (150,387) | 30.74 | (260,000) | 30.30 |
Granted during the year | 1,150,000 | 36.41 | 1,414,400 | 31.26 |
Outstanding at 31 December | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Exercisable at 31 December | - | - | ||
2024 | 2023 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 257,993 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Terminated during the year | (186,272) | - | - | - |
Outstanding at 31 December | 71,721 | - | 257,993 | - |
Exercisable at 31 December | 71,721 | - |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2024 | 2023 |
Audit | 542.9 | 465.3 |
Other services | 2.8 | 7.0 |
Total fees | 545.7 | 472.3 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2024 | 2023 |
Payroll expenses | 35.5 | 29.7 |
Social security tax | 7.0 | 5.1 |
Retirement plans | 0.9 | 0.6 |
Other personnel costs | 8.9 | 4.5 |
Share-based payment | 1.5 | 1.3 |
Total employee benefit expenses | 53.7 | 41.2 |
Average number of employees | 251 | 188 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of RSUs | Number of shares |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | - | 4,000,259 |
2023 | 2,702,632 | 1,560,424 | 93,879 | 209,118 | 895,500 | - | 3,981,139 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO) and Chief Strategy Officer (CSO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2024 | 455,000 |
2023 | 413,333 |
The compensation for members of the Board of Directors for the period from May 2024 to May 2025 will be decided at the annual general meeting in May 2025.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The maximum potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and RSUs under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis.
At 31 December 2024, a total of 5,741,734 shares are outstanding, of which 5,670,013 shares are allocated to options that will give the holder the right to acquire one BW Energy share and 71,721 shares are allocated to restricted share units (\u2018RSUs\u2019) providing the holder shares at each vesting event. The options have a vesting period of three years, followed by a three-year exercise period and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2024, the Board of Directors decided to settle 186,272 RSUs in cash, at the closing share price as traded on the stock exchange on the settlement date.
The key terms and conditions related to the grants are summarised below. All options are to be settled by the physical delivery of shares.
Grant date | Number of instruments | Vesting conditions | Contractual life of options |
On 7 July 2021 | 1,289,993 | Vesting period of three years, followed by a three year exercise period | 6 years |
On 28 February 2022 | 1,000,000 | Same as above | 6 years |
On 6 July 2022 | 1,529,000 | Same as above | 6 years |
On 7 July 2023 | 1,414,400 | Same as above | 6 years |
On 6 August 2024 | 1,150,000 | Same as above | 6 years |
Total share options | 6,383,393 |
In 2024 a total of 10 (2023:19) BW Energy employees were invited to participate in the programme.
The strike price of the options is calculated based on the volume weighted average share price five trading days prior to grant date, plus a premium of 15.76% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is measured using the Black-Scholes formula. The inputs used in the measurement of the fair value at grant date were as follows:
2024 | 2023 | |
Fair value at grant date (NOK) | 10.41 | 10.62 |
Share price at grant date (NOK) | 30.65 | 27.10 |
Exercise price (NOK) | 36.41 | 31.26 |
Expected volatility (weighted average) | 46% | 51% |
Expected life | 4 years | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.232% | 3.891% |
Expected volatility is based on an evaluation of the historical volatility of the Company\u2019s share price particularly over the historical period equal to the expected term, adjusted for extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are as follows:
2024 | 2023 | |||
Options | Number of options | Weighted -average exercise price (NOK) | Number of options | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 4,670,400 | 30.07 | 3,516,000 | 29.61 |
Terminated during the year | (150,387) | 30.74 | (260,000) | 30.30 |
Granted during the year | 1,150,000 | 36.41 | 1,414,400 | 31.26 |
Outstanding at 31 December | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Exercisable at 31 December | - | - | ||
2024 | 2023 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 257,993 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Terminated during the year | (186,272) | - | - | - |
Outstanding at 31 December | 71,721 | - | 257,993 | - |
Exercisable at 31 December | 71,721 | - |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2024 | 2023 |
Audit | 542.9 | 465.3 |
Other services | 2.8 | 7.0 |
Total fees | 545.7 | 472.3 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2024 | 2023 |
Payroll expenses | 35.5 | 29.7 |
Social security tax | 7.0 | 5.1 |
Retirement plans | 0.9 | 0.6 |
Other personnel costs | 8.9 | 4.5 |
Share-based payment | 1.5 | 1.3 |
Total employee benefit expenses | 53.7 | 41.2 |
Average number of employees | 251 | 188 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of RSUs | Number of shares |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | - | 4,000,259 |
2023 | 2,702,632 | 1,560,424 | 93,879 | 209,118 | 895,500 | - | 3,981,139 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO) and Chief Strategy Officer (CSO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2024 | 455,000 |
2023 | 413,333 |
The compensation for members of the Board of Directors for the period from May 2024 to May 2025 will be decided at the annual general meeting in May 2025.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The maximum potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and RSUs under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis.
At 31 December 2024, a total of 5,741,734 shares are outstanding, of which 5,670,013 shares are allocated to options that will give the holder the right to acquire one BW Energy share and 71,721 shares are allocated to restricted share units (\u2018RSUs\u2019) providing the holder shares at each vesting event. The options have a vesting period of three years, followed by a three-year exercise period and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2024, the Board of Directors decided to settle 186,272 RSUs in cash, at the closing share price as traded on the stock exchange on the settlement date.
The key terms and conditions related to the grants are summarised below. All options are to be settled by the physical delivery of shares.
Grant date | Number of instruments | Vesting conditions | Contractual life of options |
On 7 July 2021 | 1,289,993 | Vesting period of three years, followed by a three year exercise period | 6 years |
On 28 February 2022 | 1,000,000 | Same as above | 6 years |
On 6 July 2022 | 1,529,000 | Same as above | 6 years |
On 7 July 2023 | 1,414,400 | Same as above | 6 years |
On 6 August 2024 | 1,150,000 | Same as above | 6 years |
Total share options | 6,383,393 |
In 2024 a total of 10 (2023:19) BW Energy employees were invited to participate in the programme.
The strike price of the options is calculated based on the volume weighted average share price five trading days prior to grant date, plus a premium of 15.76% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is measured using the Black-Scholes formula. The inputs used in the measurement of the fair value at grant date were as follows:
2024 | 2023 | |
Fair value at grant date (NOK) | 10.41 | 10.62 |
Share price at grant date (NOK) | 30.65 | 27.10 |
Exercise price (NOK) | 36.41 | 31.26 |
Expected volatility (weighted average) | 46% | 51% |
Expected life | 4 years | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.232% | 3.891% |
Expected volatility is based on an evaluation of the historical volatility of the Company\u2019s share price particularly over the historical period equal to the expected term, adjusted for extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are as follows:
2024 | 2023 | |||
Options | Number of options | Weighted -average exercise price (NOK) | Number of options | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 4,670,400 | 30.07 | 3,516,000 | 29.61 |
Terminated during the year | (150,387) | 30.74 | (260,000) | 30.30 |
Granted during the year | 1,150,000 | 36.41 | 1,414,400 | 31.26 |
Outstanding at 31 December | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Exercisable at 31 December | - | - | ||
2024 | 2023 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 257,993 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Terminated during the year | (186,272) | - | - | - |
Outstanding at 31 December | 71,721 | - | 257,993 | - |
Exercisable at 31 December | 71,721 | - |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2024 | 2023 |
Audit | 542.9 | 465.3 |
Other services | 2.8 | 7.0 |
Total fees | 545.7 | 472.3 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2024 | 2023 |
Payroll expenses | 35.5 | 29.7 |
Social security tax | 7.0 | 5.1 |
Retirement plans | 0.9 | 0.6 |
Other personnel costs | 8.9 | 4.5 |
Share-based payment | 1.5 | 1.3 |
Total employee benefit expenses | 53.7 | 41.2 |
Average number of employees | 251 | 188 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of RSUs | Number of shares |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | - | 4,000,259 |
2023 | 2,702,632 | 1,560,424 | 93,879 | 209,118 | 895,500 | - | 3,981,139 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO) and Chief Strategy Officer (CSO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2024 | 455,000 |
2023 | 413,333 |
The compensation for members of the Board of Directors for the period from May 2024 to May 2025 will be decided at the annual general meeting in May 2025.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The maximum potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and RSUs under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis.
At 31 December 2024, a total of 5,741,734 shares are outstanding, of which 5,670,013 shares are allocated to options that will give the holder the right to acquire one BW Energy share and 71,721 shares are allocated to restricted share units (\u2018RSUs\u2019) providing the holder shares at each vesting event. The options have a vesting period of three years, followed by a three-year exercise period and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2024, the Board of Directors decided to settle 186,272 RSUs in cash, at the closing share price as traded on the stock exchange on the settlement date.
The key terms and conditions related to the grants are summarised below. All options are to be settled by the physical delivery of shares.
Grant date | Number of instruments | Vesting conditions | Contractual life of options |
On 7 July 2021 | 1,289,993 | Vesting period of three years, followed by a three year exercise period | 6 years |
On 28 February 2022 | 1,000,000 | Same as above | 6 years |
On 6 July 2022 | 1,529,000 | Same as above | 6 years |
On 7 July 2023 | 1,414,400 | Same as above | 6 years |
On 6 August 2024 | 1,150,000 | Same as above | 6 years |
Total share options | 6,383,393 |
In 2024 a total of 10 (2023:19) BW Energy employees were invited to participate in the programme.
The strike price of the options is calculated based on the volume weighted average share price five trading days prior to grant date, plus a premium of 15.76% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is measured using the Black-Scholes formula. The inputs used in the measurement of the fair value at grant date were as follows:
2024 | 2023 | |
Fair value at grant date (NOK) | 10.41 | 10.62 |
Share price at grant date (NOK) | 30.65 | 27.10 |
Exercise price (NOK) | 36.41 | 31.26 |
Expected volatility (weighted average) | 46% | 51% |
Expected life | 4 years | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.232% | 3.891% |
Expected volatility is based on an evaluation of the historical volatility of the Company\u2019s share price particularly over the historical period equal to the expected term, adjusted for extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are as follows:
2024 | 2023 | |||
Options | Number of options | Weighted -average exercise price (NOK) | Number of options | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 4,670,400 | 30.07 | 3,516,000 | 29.61 |
Terminated during the year | (150,387) | 30.74 | (260,000) | 30.30 |
Granted during the year | 1,150,000 | 36.41 | 1,414,400 | 31.26 |
Outstanding at 31 December | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Exercisable at 31 December | - | - | ||
2024 | 2023 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 257,993 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Terminated during the year | (186,272) | - | - | - |
Outstanding at 31 December | 71,721 | - | 257,993 | - |
Exercisable at 31 December | 71,721 | - |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2024 | 2023 |
Audit | 542.9 | 465.3 |
Other services | 2.8 | 7.0 |
Total fees | 545.7 | 472.3 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2024 | 2023 |
Payroll expenses | 35.5 | 29.7 |
Social security tax | 7.0 | 5.1 |
Retirement plans | 0.9 | 0.6 |
Other personnel costs | 8.9 | 4.5 |
Share-based payment | 1.5 | 1.3 |
Total employee benefit expenses | 53.7 | 41.2 |
Average number of employees | 251 | 188 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of RSUs | Number of shares |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | - | 4,000,259 |
2023 | 2,702,632 | 1,560,424 | 93,879 | 209,118 | 895,500 | - | 3,981,139 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO) and Chief Strategy Officer (CSO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2024 | 455,000 |
2023 | 413,333 |
The compensation for members of the Board of Directors for the period from May 2024 to May 2025 will be decided at the annual general meeting in May 2025.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The maximum potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and RSUs under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis.
At 31 December 2024, a total of 5,741,734 shares are outstanding, of which 5,670,013 shares are allocated to options that will give the holder the right to acquire one BW Energy share and 71,721 shares are allocated to restricted share units (\u2018RSUs\u2019) providing the holder shares at each vesting event. The options have a vesting period of three years, followed by a three-year exercise period and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2024, the Board of Directors decided to settle 186,272 RSUs in cash, at the closing share price as traded on the stock exchange on the settlement date.
The key terms and conditions related to the grants are summarised below. All options are to be settled by the physical delivery of shares.
Grant date | Number of instruments | Vesting conditions | Contractual life of options |
On 7 July 2021 | 1,289,993 | Vesting period of three years, followed by a three year exercise period | 6 years |
On 28 February 2022 | 1,000,000 | Same as above | 6 years |
On 6 July 2022 | 1,529,000 | Same as above | 6 years |
On 7 July 2023 | 1,414,400 | Same as above | 6 years |
On 6 August 2024 | 1,150,000 | Same as above | 6 years |
Total share options | 6,383,393 |
In 2024 a total of 10 (2023:19) BW Energy employees were invited to participate in the programme.
The strike price of the options is calculated based on the volume weighted average share price five trading days prior to grant date, plus a premium of 15.76% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is measured using the Black-Scholes formula. The inputs used in the measurement of the fair value at grant date were as follows:
2024 | 2023 | |
Fair value at grant date (NOK) | 10.41 | 10.62 |
Share price at grant date (NOK) | 30.65 | 27.10 |
Exercise price (NOK) | 36.41 | 31.26 |
Expected volatility (weighted average) | 46% | 51% |
Expected life | 4 years | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.232% | 3.891% |
Expected volatility is based on an evaluation of the historical volatility of the Company\u2019s share price particularly over the historical period equal to the expected term, adjusted for extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are as follows:
2024 | 2023 | |||
Options | Number of options | Weighted -average exercise price (NOK) | Number of options | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 4,670,400 | 30.07 | 3,516,000 | 29.61 |
Terminated during the year | (150,387) | 30.74 | (260,000) | 30.30 |
Granted during the year | 1,150,000 | 36.41 | 1,414,400 | 31.26 |
Outstanding at 31 December | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Exercisable at 31 December | - | - | ||
2024 | 2023 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 257,993 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Terminated during the year | (186,272) | - | - | - |
Outstanding at 31 December | 71,721 | - | 257,993 | - |
Exercisable at 31 December | 71,721 | - |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2024 | 2023 |
Audit | 542.9 | 465.3 |
Other services | 2.8 | 7.0 |
Total fees | 545.7 | 472.3 |
Note 7\tFinancial items
USD MILLION | 2024 | 2023 |
Total interest income | 13.1 | 8.3 |
Accretion income on discounted receivable | 2.8 | - |
Other financial income | 0.7 | 2.8 |
Total other financial income | 3.5 | 2.8 |
Interest expense | (62.2) | (31.6) |
Capitalised interest cost, development projects\u200c1 | 28.3 | 27.8 |
Amortised loan costs | (1.8) | (1.2) |
Total interest expenses | (35.7) | (5.1) |
Lease interest expense | (15.3) | (16.6) |
Accretion expense related to abandonment provisions | (8.3) | (3.3) |
Accretion expense related to contingent payments | (2.7) | (2.0) |
Other financial expenses | (1.0) | (2.8) |
Total other financial expenses | (27.3) | (24.6) |
Net financial items | (46.4) | (18.6) |
1The weighted average interest rate used to determine the amount of borrowing cost eligible for capitalisation as part of the development projects is 9.91 percent (2023: 10.85 percent).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__65": { "value": "Note 7\tFinancial items
USD MILLION | 2024 | 2023 |
Total interest income | 13.1 | 8.3 |
Accretion income on discounted receivable | 2.8 | - |
Other financial income | 0.7 | 2.8 |
Total other financial income | 3.5 | 2.8 |
Interest expense | (62.2) | (31.6) |
Capitalised interest cost, development projects\u200c1 | 28.3 | 27.8 |
Amortised loan costs | (1.8) | (1.2) |
Total interest expenses | (35.7) | (5.1) |
Lease interest expense | (15.3) | (16.6) |
Accretion expense related to abandonment provisions | (8.3) | (3.3) |
Accretion expense related to contingent payments | (2.7) | (2.0) |
Other financial expenses | (1.0) | (2.8) |
Total other financial expenses | (27.3) | (24.6) |
Net financial items | (46.4) | (18.6) |
1The weighted average interest rate used to determine the amount of borrowing cost eligible for capitalisation as part of the development projects is 9.91 percent (2023: 10.85 percent).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__66": { "value": "Note 7\tFinancial items
USD MILLION | 2024 | 2023 |
Total interest income | 13.1 | 8.3 |
Accretion income on discounted receivable | 2.8 | - |
Other financial income | 0.7 | 2.8 |
Total other financial income | 3.5 | 2.8 |
Interest expense | (62.2) | (31.6) |
Capitalised interest cost, development projects\u200c1 | 28.3 | 27.8 |
Amortised loan costs | (1.8) | (1.2) |
Total interest expenses | (35.7) | (5.1) |
Lease interest expense | (15.3) | (16.6) |
Accretion expense related to abandonment provisions | (8.3) | (3.3) |
Accretion expense related to contingent payments | (2.7) | (2.0) |
Other financial expenses | (1.0) | (2.8) |
Total other financial expenses | (27.3) | (24.6) |
Net financial items | (46.4) | (18.6) |
1The weighted average interest rate used to determine the amount of borrowing cost eligible for capitalisation as part of the development projects is 9.91 percent (2023: 10.85 percent).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__67": { "value": "Note 8\tIncome taxes
The income tax expense for the period comprises corporate income tax, profit oil tax and deferred tax.
Corporate income tax is assessed on the actual profits of a subsidiary, and the rate and regulations depend on the specific tax regime in the jurisdiction where the subsidiary operates. Profit oil tax is levied under the production sharing contract in Gabon, where the tax is calculated based on the share of profit oil allocated to the government. Deferred tax is determined based on temporary differences between the carrying amounts of existing assets and liabilities and their respective tax bases.
The majority of the Group\u2019s tax expense is related to the operation of Dussafu production sharing contract in Gabon. The Golfinho field in Brazil is taxed under the ordinary corporate income tax regime.
The Pillar Two tax framework introduced by the Organisation for Economic Cooperation and Development is intended to establish a global minimum corporate tax rate of 15% in each jurisdiction where a company operates. In connection with this initiative, Bermuda introduced a 15% corporate income tax with effect from 1 January 2025, that will be appli-cable to Bermuda companies that are part of multinational enterprise groups with annual revenue of EUR 750 million or more in at least two of the four preceding fiscal years. BW Energy will not be subject to this tax in 2025, however, the Company may become subject to it in the future years, based on the results of its operations. Additionally, the Company is currently evaluating the impact from other Pillar Two tax legislation enacted or expected to be enacted by other countries where it currently operates. This legislation did not have any impact on 2024 tax expenses.
As the Group\u2019s operations are subject to different methods of taxation, income tax expense will not necessarily change proportionally with changes in the overall net profit before tax. Due to the PSC taxation arrangement in Gabon, there is no direct correlation between profit before tax and tax expense, therefore, the effective tax rate may differ significantly between comparable periods.
Tax expense for the year
USD MILLION | 2024 | 2023 |
Profit oil tax | 71.6 | 45.7 |
Tax expense including withholding tax | 3.8 | 0.9 |
Changes in deferred tax | (11.2) | (5.2) |
Total tax expense | 64.2 | 41.5 |
Deferred tax assets and liabilities are as follows:
USD MILLION | 2024 | 2023 |
Deferred tax assets | ||
Tax losses and other temporary differences | 19.0 | 7.6 |
Deferred tax assets | 19.0 | 7.6 |
Deferred tax liabilities | ||
Timing difference for financing costs | (13.6) | (11.7) |
Deferred tax liabilities | (13.6) | (11.7) |
Net deferred tax assets\u00a0/ (liabilities) | 5.4 | (4.1) |
Deferred tax asset of USD 19 million in 2024 reflects the future benefit from tax losses carried forward and other temporary differences in Brazil. USD 3.2 million corresponds to the tax loss carry forward, which does not expire but may only offset 30% of taxable profit each year. USD 15.8 million of the deferred tax benefit corresponds to other temporary differences, with USD 10 million attributable to unrealised foreign currency exchange differences, USD 3.1 million to inventory, and USD 2.8 million to accretion expense. At 31 December 2023, USD 5.1 million of the deferred tax asset was related to tax loss carry forward and USD 2.5 million to other temporary differences, including depreciation, accretion expense and unrealised foreign currency exchange differences.
Deferred tax liability of USD 13.6 million relates to unremitted foreign interest income in Singapore.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__68": { "value": "Note 8\tIncome taxes
The income tax expense for the period comprises corporate income tax, profit oil tax and deferred tax.
Corporate income tax is assessed on the actual profits of a subsidiary, and the rate and regulations depend on the specific tax regime in the jurisdiction where the subsidiary operates. Profit oil tax is levied under the production sharing contract in Gabon, where the tax is calculated based on the share of profit oil allocated to the government. Deferred tax is determined based on temporary differences between the carrying amounts of existing assets and liabilities and their respective tax bases.
The majority of the Group\u2019s tax expense is related to the operation of Dussafu production sharing contract in Gabon. The Golfinho field in Brazil is taxed under the ordinary corporate income tax regime.
The Pillar Two tax framework introduced by the Organisation for Economic Cooperation and Development is intended to establish a global minimum corporate tax rate of 15% in each jurisdiction where a company operates. In connection with this initiative, Bermuda introduced a 15% corporate income tax with effect from 1 January 2025, that will be appli-cable to Bermuda companies that are part of multinational enterprise groups with annual revenue of EUR 750 million or more in at least two of the four preceding fiscal years. BW Energy will not be subject to this tax in 2025, however, the Company may become subject to it in the future years, based on the results of its operations. Additionally, the Company is currently evaluating the impact from other Pillar Two tax legislation enacted or expected to be enacted by other countries where it currently operates. This legislation did not have any impact on 2024 tax expenses.
As the Group\u2019s operations are subject to different methods of taxation, income tax expense will not necessarily change proportionally with changes in the overall net profit before tax. Due to the PSC taxation arrangement in Gabon, there is no direct correlation between profit before tax and tax expense, therefore, the effective tax rate may differ significantly between comparable periods.
Tax expense for the year
USD MILLION | 2024 | 2023 |
Profit oil tax | 71.6 | 45.7 |
Tax expense including withholding tax | 3.8 | 0.9 |
Changes in deferred tax | (11.2) | (5.2) |
Total tax expense | 64.2 | 41.5 |
Deferred tax assets and liabilities are as follows:
USD MILLION | 2024 | 2023 |
Deferred tax assets | ||
Tax losses and other temporary differences | 19.0 | 7.6 |
Deferred tax assets | 19.0 | 7.6 |
Deferred tax liabilities | ||
Timing difference for financing costs | (13.6) | (11.7) |
Deferred tax liabilities | (13.6) | (11.7) |
Net deferred tax assets\u00a0/ (liabilities) | 5.4 | (4.1) |
Deferred tax asset of USD 19 million in 2024 reflects the future benefit from tax losses carried forward and other temporary differences in Brazil. USD 3.2 million corresponds to the tax loss carry forward, which does not expire but may only offset 30% of taxable profit each year. USD 15.8 million of the deferred tax benefit corresponds to other temporary differences, with USD 10 million attributable to unrealised foreign currency exchange differences, USD 3.1 million to inventory, and USD 2.8 million to accretion expense. At 31 December 2023, USD 5.1 million of the deferred tax asset was related to tax loss carry forward and USD 2.5 million to other temporary differences, including depreciation, accretion expense and unrealised foreign currency exchange differences.
Deferred tax liability of USD 13.6 million relates to unremitted foreign interest income in Singapore.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__69": { "value": "Note 9\tEarnings per share
Basic
Basic earnings per share is calculated by dividing the net result attributable to the shareholders of the parent by the weighted average number of ordinary shares in issue during the year.
IN THOUSAND | 2024 | 2023 |
Issued ordinary shares at 1 January | 257,994 | 257,994 |
Effect of shares issued | - | - |
Weighted-average number of ordinary shares at 31 December | 257,994 | 257,994 |
2024 | 2023 | |
Profit attributable to ordinary shareholders | 165.9 | 81.0 |
Weighted-average number of ordinary shares | 257,994 | 257,994 |
Basic earnings per share, net | 0.64 | 0.31 |
Diluted
At 31 December 2024, 5,741,734 options (4,928,393) were excluded from the diluted weighted-average number of ordinary shares calculation, because their effect would have been anti-dilutive. These are the only potentially dilutive instruments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__70": { "value": "Note 10\tProperty, plant and equipment
2024 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2024 | 1,073.0 | 200.9 | 4.5 | 1,278.4 |
Additions and transfers | 242.0 | 10.6 | 3.8 | 256.4 |
Changes in asset retirement cost | (51.3) | - | - | (51.3) |
Acquisition cost at 31 December 2024 | 1,263.6 | 211.5 | 8.3 | 1,483.4 |
Accumulated depreciation at 1 January 2024 | (223.1) | - | (1.0) | (224.1) |
Current year depreciation\u200c | (127.6) | - | (2.2) | (129.8) |
Accumulated depreciation at 31 December 2024 | (350.7) | - | (3.2) | (353.9) |
Book value at 31 December 2024 | 912.9 | 211.5 | 5.1 | 1,129.5 |
Useful life | UoP | 3\u20135 years | ||
2023 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2023 | 384.9 | 308.5 | 1.6 | 695.0 |
Additions and transfers | 524.7 | (107.6) | 2.9 | 420.0 |
Changes in asset retirement cost | 163.4 | - | - | 163.4 |
Acquisition cost at 31 December 2023 | 1,073.0 | 200.9 | 4.5 | 1,278.4 |
Accumulated depreciation at 1 January 2023 | (151.1) | - | (0.8) | (151.9) |
Current year depreciation\u200c | (72.0) | - | (0.2) | (72.2) |
Accumulated depreciation at 31 December 2023 | (223.1) | - | (1.0) | (224.1) |
Book value at 31 December 2023 | 849.9 | 200.9 | 3.5 | 1,054.3 |
Useful life | UoP | 3\u20135 years |
The Dussafu licence expires in 10 years from commencement of production. At the end of this term, BW Energy has the right to file for two additional 5-year extensions. Production assets located in the Dussafu licence area are depreciated based on 2P reserves estimated to be produced over a 20-year licence period as BW Energy considers it probable that the licence extensions will be granted. The Group\u2019s ownership in this area is 73.5%.
BW Energy performed an impairment trigger assessment at 31 December 2024 and 2023 and no impairment indicators were identified.
Refer to Note 25regarding the additions related to acquisitions completed during 2023.
Note 10\tProperty, plant and equipment
2024 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2024 | 1,073.0 | 200.9 | 4.5 | 1,278.4 |
Additions and transfers | 242.0 | 10.6 | 3.8 | 256.4 |
Changes in asset retirement cost | (51.3) | - | - | (51.3) |
Acquisition cost at 31 December 2024 | 1,263.6 | 211.5 | 8.3 | 1,483.4 |
Accumulated depreciation at 1 January 2024 | (223.1) | - | (1.0) | (224.1) |
Current year depreciation\u200c | (127.6) | - | (2.2) | (129.8) |
Accumulated depreciation at 31 December 2024 | (350.7) | - | (3.2) | (353.9) |
Book value at 31 December 2024 | 912.9 | 211.5 | 5.1 | 1,129.5 |
Useful life | UoP | 3\u20135 years | ||
2023 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2023 | 384.9 | 308.5 | 1.6 | 695.0 |
Additions and transfers | 524.7 | (107.6) | 2.9 | 420.0 |
Changes in asset retirement cost | 163.4 | - | - | 163.4 |
Acquisition cost at 31 December 2023 | 1,073.0 | 200.9 | 4.5 | 1,278.4 |
Accumulated depreciation at 1 January 2023 | (151.1) | - | (0.8) | (151.9) |
Current year depreciation\u200c | (72.0) | - | (0.2) | (72.2) |
Accumulated depreciation at 31 December 2023 | (223.1) | - | (1.0) | (224.1) |
Book value at 31 December 2023 | 849.9 | 200.9 | 3.5 | 1,054.3 |
Useful life | UoP | 3\u20135 years |
The Dussafu licence expires in 10 years from commencement of production. At the end of this term, BW Energy has the right to file for two additional 5-year extensions. Production assets located in the Dussafu licence area are depreciated based on 2P reserves estimated to be produced over a 20-year licence period as BW Energy considers it probable that the licence extensions will be granted. The Group\u2019s ownership in this area is 73.5%.
BW Energy performed an impairment trigger assessment at 31 December 2024 and 2023 and no impairment indicators were identified.
Refer to Note 25regarding the additions related to acquisitions completed during 2023.
Note 11\tIntangible assets
2024 | ||||
USD MILLION | Exploration and evaluation expenditures | Acquired licence costs | ||
Other intangible assets | Total | |||
Acquisiton cost | ||||
At 1 January 2024 | 169.0 | 28.4 | 69.6 | 267.0 |
Additions and transfers | 39.8 | 2.0 | 1.5 | 43.3 |
Carrying amount, 31 December 2024 | 208.8 | 30.4 | 71.1 | 310.3 |
Amortisation and impairment | ||||
At 1 January 2024 | - | (1.4) | (10.3) | (11.7) |
Amortisation | - | (2.9) | (4.0) | (6.9) |
At 31 December 2024 | - | (4.3) | (14.3) | (18.6) |
Net book value | ||||
At 31 December 2024 | 208.8 | 26.1 | 56.8 | 291.8 |
Useful life | 3/20 years | |||
Amortisation method | UoP | SL | ||
2023 | ||||
USD MILLION | Exploration and evaluation expenditures | Acquired licence costs | ||
Other intangible assets | Total | |||
Acquisiton cost | ||||
At 1 January 2023 | 149.4 | - | 69.3 | 218.7 |
Additions and transfers | 19.6 | 28.4 | 0.3 | 48.3 |
Carrying amount, 31 December 2023 | 169.0 | 28.4 | 69.6 | 267.0 |
Amortisation and impairment | ||||
At 1 January 2023 | - | - | (6.2) | (6.2) |
Amortisation | - | (1.4) | (4.1) | (5.5) |
At 31 December 2023 | - | (1.4) | (10.3) | (11.7) |
Net book value | ||||
At 31 December 2023 | 169.0 | 27.0 | 59.3 | 255.3 |
Useful life | 3/20 years | |||
Amortisation method | UoP | SL |
Additions into exploration and evaluation expenditures in 2024 mainly relate to further investments in the Kudu field in Namibia and the Maromba field in Brazil. These assets are not amortised.
The acquired licence costs result from the 2023 acquisition of Golfinho cluster in Brazil (reference to Note 25), USD 24.8 million related to producing area is currently amortised using units-of-production method and the remainder is not amortised as related to an exploration block.
Other intangible assets include the intellectual property asset and capitalised software costs. The intellectual property asset is amortised over the life of the Dussafu Production Sharing Contract using the straight-line method.
BW Energy performed an impairment trigger assessment at 31 December 2024 and 2023, no impairment indicators were identified.
Note 10\tProperty, plant and equipment
2024 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2024 | 1,073.0 | 200.9 | 4.5 | 1,278.4 |
Additions and transfers | 242.0 | 10.6 | 3.8 | 256.4 |
Changes in asset retirement cost | (51.3) | - | - | (51.3) |
Acquisition cost at 31 December 2024 | 1,263.6 | 211.5 | 8.3 | 1,483.4 |
Accumulated depreciation at 1 January 2024 | (223.1) | - | (1.0) | (224.1) |
Current year depreciation\u200c | (127.6) | - | (2.2) | (129.8) |
Accumulated depreciation at 31 December 2024 | (350.7) | - | (3.2) | (353.9) |
Book value at 31 December 2024 | 912.9 | 211.5 | 5.1 | 1,129.5 |
Useful life | UoP | 3\u20135 years | ||
2023 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2023 | 384.9 | 308.5 | 1.6 | 695.0 |
Additions and transfers | 524.7 | (107.6) | 2.9 | 420.0 |
Changes in asset retirement cost | 163.4 | - | - | 163.4 |
Acquisition cost at 31 December 2023 | 1,073.0 | 200.9 | 4.5 | 1,278.4 |
Accumulated depreciation at 1 January 2023 | (151.1) | - | (0.8) | (151.9) |
Current year depreciation\u200c | (72.0) | - | (0.2) | (72.2) |
Accumulated depreciation at 31 December 2023 | (223.1) | - | (1.0) | (224.1) |
Book value at 31 December 2023 | 849.9 | 200.9 | 3.5 | 1,054.3 |
Useful life | UoP | 3\u20135 years |
The Dussafu licence expires in 10 years from commencement of production. At the end of this term, BW Energy has the right to file for two additional 5-year extensions. Production assets located in the Dussafu licence area are depreciated based on 2P reserves estimated to be produced over a 20-year licence period as BW Energy considers it probable that the licence extensions will be granted. The Group\u2019s ownership in this area is 73.5%.
BW Energy performed an impairment trigger assessment at 31 December 2024 and 2023 and no impairment indicators were identified.
Refer to Note 25regarding the additions related to acquisitions completed during 2023.
Note 11\tIntangible assets
2024 | ||||
USD MILLION | Exploration and evaluation expenditures | Acquired licence costs | ||
Other intangible assets | Total | |||
Acquisiton cost | ||||
At 1 January 2024 | 169.0 | 28.4 | 69.6 | 267.0 |
Additions and transfers | 39.8 | 2.0 | 1.5 | 43.3 |
Carrying amount, 31 December 2024 | 208.8 | 30.4 | 71.1 | 310.3 |
Amortisation and impairment | ||||
At 1 January 2024 | - | (1.4) | (10.3) | (11.7) |
Amortisation | - | (2.9) | (4.0) | (6.9) |
At 31 December 2024 | - | (4.3) | (14.3) | (18.6) |
Net book value | ||||
At 31 December 2024 | 208.8 | 26.1 | 56.8 | 291.8 |
Useful life | 3/20 years | |||
Amortisation method | UoP | SL | ||
2023 | ||||
USD MILLION | Exploration and evaluation expenditures | Acquired licence costs | ||
Other intangible assets | Total | |||
Acquisiton cost | ||||
At 1 January 2023 | 149.4 | - | 69.3 | 218.7 |
Additions and transfers | 19.6 | 28.4 | 0.3 | 48.3 |
Carrying amount, 31 December 2023 | 169.0 | 28.4 | 69.6 | 267.0 |
Amortisation and impairment | ||||
At 1 January 2023 | - | - | (6.2) | (6.2) |
Amortisation | - | (1.4) | (4.1) | (5.5) |
At 31 December 2023 | - | (1.4) | (10.3) | (11.7) |
Net book value | ||||
At 31 December 2023 | 169.0 | 27.0 | 59.3 | 255.3 |
Useful life | 3/20 years | |||
Amortisation method | UoP | SL |
Additions into exploration and evaluation expenditures in 2024 mainly relate to further investments in the Kudu field in Namibia and the Maromba field in Brazil. These assets are not amortised.
The acquired licence costs result from the 2023 acquisition of Golfinho cluster in Brazil (reference to Note 25), USD 24.8 million related to producing area is currently amortised using units-of-production method and the remainder is not amortised as related to an exploration block.
Other intangible assets include the intellectual property asset and capitalised software costs. The intellectual property asset is amortised over the life of the Dussafu Production Sharing Contract using the straight-line method.
BW Energy performed an impairment trigger assessment at 31 December 2024 and 2023, no impairment indicators were identified.
Note 11\tIntangible assets
2024 | ||||
USD MILLION | Exploration and evaluation expenditures | Acquired licence costs | ||
Other intangible assets | Total | |||
Acquisiton cost | ||||
At 1 January 2024 | 169.0 | 28.4 | 69.6 | 267.0 |
Additions and transfers | 39.8 | 2.0 | 1.5 | 43.3 |
Carrying amount, 31 December 2024 | 208.8 | 30.4 | 71.1 | 310.3 |
Amortisation and impairment | ||||
At 1 January 2024 | - | (1.4) | (10.3) | (11.7) |
Amortisation | - | (2.9) | (4.0) | (6.9) |
At 31 December 2024 | - | (4.3) | (14.3) | (18.6) |
Net book value | ||||
At 31 December 2024 | 208.8 | 26.1 | 56.8 | 291.8 |
Useful life | 3/20 years | |||
Amortisation method | UoP | SL | ||
2023 | ||||
USD MILLION | Exploration and evaluation expenditures | Acquired licence costs | ||
Other intangible assets | Total | |||
Acquisiton cost | ||||
At 1 January 2023 | 149.4 | - | 69.3 | 218.7 |
Additions and transfers | 19.6 | 28.4 | 0.3 | 48.3 |
Carrying amount, 31 December 2023 | 169.0 | 28.4 | 69.6 | 267.0 |
Amortisation and impairment | ||||
At 1 January 2023 | - | - | (6.2) | (6.2) |
Amortisation | - | (1.4) | (4.1) | (5.5) |
At 31 December 2023 | - | (1.4) | (10.3) | (11.7) |
Net book value | ||||
At 31 December 2023 | 169.0 | 27.0 | 59.3 | 255.3 |
Useful life | 3/20 years | |||
Amortisation method | UoP | SL |
Additions into exploration and evaluation expenditures in 2024 mainly relate to further investments in the Kudu field in Namibia and the Maromba field in Brazil. These assets are not amortised.
The acquired licence costs result from the 2023 acquisition of Golfinho cluster in Brazil (reference to Note 25), USD 24.8 million related to producing area is currently amortised using units-of-production method and the remainder is not amortised as related to an exploration block.
Other intangible assets include the intellectual property asset and capitalised software costs. The intellectual property asset is amortised over the life of the Dussafu Production Sharing Contract using the straight-line method.
BW Energy performed an impairment trigger assessment at 31 December 2024 and 2023, no impairment indicators were identified.
Note 11\tIntangible assets
2024 | ||||
USD MILLION | Exploration and evaluation expenditures | Acquired licence costs | ||
Other intangible assets | Total | |||
Acquisiton cost | ||||
At 1 January 2024 | 169.0 | 28.4 | 69.6 | 267.0 |
Additions and transfers | 39.8 | 2.0 | 1.5 | 43.3 |
Carrying amount, 31 December 2024 | 208.8 | 30.4 | 71.1 | 310.3 |
Amortisation and impairment | ||||
At 1 January 2024 | - | (1.4) | (10.3) | (11.7) |
Amortisation | - | (2.9) | (4.0) | (6.9) |
At 31 December 2024 | - | (4.3) | (14.3) | (18.6) |
Net book value | ||||
At 31 December 2024 | 208.8 | 26.1 | 56.8 | 291.8 |
Useful life | 3/20 years | |||
Amortisation method | UoP | SL | ||
2023 | ||||
USD MILLION | Exploration and evaluation expenditures | Acquired licence costs | ||
Other intangible assets | Total | |||
Acquisiton cost | ||||
At 1 January 2023 | 149.4 | - | 69.3 | 218.7 |
Additions and transfers | 19.6 | 28.4 | 0.3 | 48.3 |
Carrying amount, 31 December 2023 | 169.0 | 28.4 | 69.6 | 267.0 |
Amortisation and impairment | ||||
At 1 January 2023 | - | - | (6.2) | (6.2) |
Amortisation | - | (1.4) | (4.1) | (5.5) |
At 31 December 2023 | - | (1.4) | (10.3) | (11.7) |
Net book value | ||||
At 31 December 2023 | 169.0 | 27.0 | 59.3 | 255.3 |
Useful life | 3/20 years | |||
Amortisation method | UoP | SL |
Additions into exploration and evaluation expenditures in 2024 mainly relate to further investments in the Kudu field in Namibia and the Maromba field in Brazil. These assets are not amortised.
The acquired licence costs result from the 2023 acquisition of Golfinho cluster in Brazil (reference to Note 25), USD 24.8 million related to producing area is currently amortised using units-of-production method and the remainder is not amortised as related to an exploration block.
Other intangible assets include the intellectual property asset and capitalised software costs. The intellectual property asset is amortised over the life of the Dussafu Production Sharing Contract using the straight-line method.
BW Energy performed an impairment trigger assessment at 31 December 2024 and 2023, no impairment indicators were identified.
Note 12\tOther non-current assets
USD MILLION | 2024 | 2023 |
Receivable from Dussafu JV partners | 34.9 | - |
Abandonment cost reimbursement | 28.9 | 33.7 |
Listed equity securities | 13.1 | - |
Other non-current assets | 1.2 | 0.5 |
Total non-current assets | 78.1 | 34.2 |
Receivable from Dussafu JV partners
In connection with the MaBoMosale-leaseback transaction in April 2024 (refer to note 17), BW Energy distributed USD 40 million of the proceeds to other participants in the Dussafu joint venture, in line with their working interest in this property. Total outstanding balance of this receivable is USD 36.5 million at year-end, USD 4 million is presented as current receivable and USD 32.5 million represents the non-current portion. This transaction is presented under investing activities in the statement of cash flows. Interest and principal payments will be collected monthly through April 2034. In addition, this category includes USD 2.4 million related to project financing recognised by BW Energy gross with an offsetting receivable from the joint venture partners.
Abandonment cost reimbursement
Under the terms of the purchase and sale agreement for Golfinho Cluster assets, Petrobras will reimburse USD 40 million of the abandonment cost after completion of decommissioning for the designated wells. Initially, this receivable was recognised at USD 33.7 million in 2023, and subsequently revalued in 2024 due to changes in the expected well decommissioning date, which will also postpone the collection of this receivable.
Listed equity securities
In August 2024, BW Energy acquired an aggregate of 17,600,000 common shares and 17,600,000 common share purchase warrants of Reconnaissance Energy Africa Ltd. (\u2018ReconAfrica\u2019). These units were acquired at a purchase price of CAD 1.25 per unit, for an aggregate purchase price of CAD 22 million or approximately USD 16 million pursuant to the offering of units by ReconAfrica. Each unit is comprised of one common share and one warrant, with each warrant entitling the holder thereof to purchase one common share at a price of CAD 1.75 within 24 months following the closing of the offering. BW Energy owns approximately 6.6% of the outstanding common shares, not including the warrants.
Consequently, BW Energy and ReconAfrica entered into a farm-in agreement, providing for the terms of a farm-in transaction, including the transfer to BW Energy of a 20% working interest in the onshore exploration licence PEL 73 in Namibia. The approval from the Namibian Ministry of Mines and Energy and Namcor Exploration and Production Pty Ltd for this transfer was received in January 2025. ReconAfrica will pay USD 16 million on behalf of BW Energy (\u2018carry\u2019) based on the intended initial work program.
BW Energy accounted for this initial investment under IFRS 9 Financial Instruments and designated it as equity secu-rities at FVOCI because these equity securities represent investments that are intended to be held for the long term for strategic purposes as this enables the Group to expand its footprint in the strategically important energy region.
Note 12\tOther non-current assets
USD MILLION | 2024 | 2023 |
Receivable from Dussafu JV partners | 34.9 | - |
Abandonment cost reimbursement | 28.9 | 33.7 |
Listed equity securities | 13.1 | - |
Other non-current assets | 1.2 | 0.5 |
Total non-current assets | 78.1 | 34.2 |
Receivable from Dussafu JV partners
In connection with the MaBoMosale-leaseback transaction in April 2024 (refer to note 17), BW Energy distributed USD 40 million of the proceeds to other participants in the Dussafu joint venture, in line with their working interest in this property. Total outstanding balance of this receivable is USD 36.5 million at year-end, USD 4 million is presented as current receivable and USD 32.5 million represents the non-current portion. This transaction is presented under investing activities in the statement of cash flows. Interest and principal payments will be collected monthly through April 2034. In addition, this category includes USD 2.4 million related to project financing recognised by BW Energy gross with an offsetting receivable from the joint venture partners.
Abandonment cost reimbursement
Under the terms of the purchase and sale agreement for Golfinho Cluster assets, Petrobras will reimburse USD 40 million of the abandonment cost after completion of decommissioning for the designated wells. Initially, this receivable was recognised at USD 33.7 million in 2023, and subsequently revalued in 2024 due to changes in the expected well decommissioning date, which will also postpone the collection of this receivable.
Listed equity securities
In August 2024, BW Energy acquired an aggregate of 17,600,000 common shares and 17,600,000 common share purchase warrants of Reconnaissance Energy Africa Ltd. (\u2018ReconAfrica\u2019). These units were acquired at a purchase price of CAD 1.25 per unit, for an aggregate purchase price of CAD 22 million or approximately USD 16 million pursuant to the offering of units by ReconAfrica. Each unit is comprised of one common share and one warrant, with each warrant entitling the holder thereof to purchase one common share at a price of CAD 1.75 within 24 months following the closing of the offering. BW Energy owns approximately 6.6% of the outstanding common shares, not including the warrants.
Consequently, BW Energy and ReconAfrica entered into a farm-in agreement, providing for the terms of a farm-in transaction, including the transfer to BW Energy of a 20% working interest in the onshore exploration licence PEL 73 in Namibia. The approval from the Namibian Ministry of Mines and Energy and Namcor Exploration and Production Pty Ltd for this transfer was received in January 2025. ReconAfrica will pay USD 16 million on behalf of BW Energy (\u2018carry\u2019) based on the intended initial work program.
BW Energy accounted for this initial investment under IFRS 9 Financial Instruments and designated it as equity secu-rities at FVOCI because these equity securities represent investments that are intended to be held for the long term for strategic purposes as this enables the Group to expand its footprint in the strategically important energy region.
Note 14\tTrade and other current assets
Trade receivables are recognised in the statement of financial position at nominal value after a deduction for the provision for credit losses. Historically there have been no significant credit losses, and BW Energy\u2019s customers are mainly large, financially sound oil companies. Trade receivables consist of receivables related to the sale of crude oil. Trade and other receivables are mainly denominated in USD. Credit risk and foreign exchange risk regarding trade receivables are described in Note23.
USD MILLION | 2024 | 2023 |
Trade receivables | 11.8 | 10.4 |
JV receivables | 25.5 | 21.4 |
Other receivables | 21.4 | 10.1 |
Tax receivables | 3.3 | 0.2 |
Prepayments | 6.6 | 9.6 |
Trade and other current assets | 68.6 | 51.7 |
Note 13\tInventories
USD MILLION | 2024 | 2023 |
Crude oil | 41.1 | 19.1 |
Materials and consumables | 10.8 | 9.5 |
Fuel oil | 4.7 | 4.9 |
Inventories | 56.7 | 33.5 |
At year-end 2024, the remaining crude oil inventory was approximately 440,500 barrels in Golfinho field in Brazil and 248,700 barrels in Dussafu area in Gabon due to an underlift position (323,000 barrels in Golfinho at year-end 2023).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__80": { "value": "Note 14\tTrade and other current assets
Trade receivables are recognised in the statement of financial position at nominal value after a deduction for the provision for credit losses. Historically there have been no significant credit losses, and BW Energy\u2019s customers are mainly large, financially sound oil companies. Trade receivables consist of receivables related to the sale of crude oil. Trade and other receivables are mainly denominated in USD. Credit risk and foreign exchange risk regarding trade receivables are described in Note23.
USD MILLION | 2024 | 2023 |
Trade receivables | 11.8 | 10.4 |
JV receivables | 25.5 | 21.4 |
Other receivables | 21.4 | 10.1 |
Tax receivables | 3.3 | 0.2 |
Prepayments | 6.6 | 9.6 |
Trade and other current assets | 68.6 | 51.7 |
Note 14\tTrade and other current assets
Trade receivables are recognised in the statement of financial position at nominal value after a deduction for the provision for credit losses. Historically there have been no significant credit losses, and BW Energy\u2019s customers are mainly large, financially sound oil companies. Trade receivables consist of receivables related to the sale of crude oil. Trade and other receivables are mainly denominated in USD. Credit risk and foreign exchange risk regarding trade receivables are described in Note23.
USD MILLION | 2024 | 2023 |
Trade receivables | 11.8 | 10.4 |
JV receivables | 25.5 | 21.4 |
Other receivables | 21.4 | 10.1 |
Tax receivables | 3.3 | 0.2 |
Prepayments | 6.6 | 9.6 |
Trade and other current assets | 68.6 | 51.7 |
Note 14\tTrade and other current assets
Trade receivables are recognised in the statement of financial position at nominal value after a deduction for the provision for credit losses. Historically there have been no significant credit losses, and BW Energy\u2019s customers are mainly large, financially sound oil companies. Trade receivables consist of receivables related to the sale of crude oil. Trade and other receivables are mainly denominated in USD. Credit risk and foreign exchange risk regarding trade receivables are described in Note23.
USD MILLION | 2024 | 2023 |
Trade receivables | 11.8 | 10.4 |
JV receivables | 25.5 | 21.4 |
Other receivables | 21.4 | 10.1 |
Tax receivables | 3.3 | 0.2 |
Prepayments | 6.6 | 9.6 |
Trade and other current assets | 68.6 | 51.7 |
Note 15\tCash and cash equivalents
Cash and cash equivalents are denominated primarily in USD, \u200cXAF, BRL and EUR. USD 30.4 million (USD 43.4 million) of the total cash position at 31 December 2024 is set aside in the debt service reserve account related to the Dussafu RBL facility (refer to Note 17).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__85": { "value": "Note 15\tCash and cash equivalents
Cash and cash equivalents are denominated primarily in USD, \u200cXAF, BRL and EUR. USD 30.4 million (USD 43.4 million) of the total cash position at 31 December 2024 is set aside in the debt service reserve account related to the Dussafu RBL facility (refer to Note 17).
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__86": { "value": "Note 16\tShare capital
Authorised share capital:
At 1 January 2024: 300,000,000 ordinary shares at par value USD 0.01 each
At 31 December 2024:\t300,000,000 ordinary shares at par value USD 0.01 each
Issued and fully paid | USD THOUSAND |
At 1 January 2024 | 2,580 |
At 31 December 2024 | 2,580 |
Reference to \u2018Shareholder information\u2019 section for information of the 20 largest shareholders.
Reference to Note 22for information on the mandatory offer by BW Group Limited to acquire all remaining shares in BW Energy Limited.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__87": { "value": "Note 16\tShare capital
Authorised share capital:
At 1 January 2024: 300,000,000 ordinary shares at par value USD 0.01 each
At 31 December 2024:\t300,000,000 ordinary shares at par value USD 0.01 each
Issued and fully paid | USD THOUSAND |
At 1 January 2024 | 2,580 |
At 31 December 2024 | 2,580 |
Reference to \u2018Shareholder information\u2019 section for information of the 20 largest shareholders.
Reference to Note 22for information on the mandatory offer by BW Group Limited to acquire all remaining shares in BW Energy Limited.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__88": { "value": "Note 17\tLoans and borrowings
Carrying amount | ||||
USD MILLION | Interest rate | Maturity date | 2024 | 2023 |
Total long-term debt: | ||||
Reserve Based Lending facility | SOFR 3 months + 0.25% + margin\u200c1 | 07-Aug-28 | 250.0 | 300.0 |
MaBoMosale-leaseback - non-current portion | 3 months CME Term SOFR + 3.75% | 30-April-31\u200c2 | 127.5 | - |
Senior unsecured callable bonds | 10% | 18-Jun-29 | 100.0 | - |
Unamortised transaction costs | (9.3) | (7.4) | ||
Total long-term debt | 468.2 | 292.6 | ||
Total short-term debt: | ||||
Golfinho prepayment facility | SOFR 3 months + 4.5% | 31-Jul-24 | 80.0 | 80.0 |
MaBoMosale-leaseback - current portion | 30-April-31\u200c2 | 15.0 | - | |
Unamortised transaction costs | (0.4) | (0.1) | ||
Total short-term debt | 94.6 | 79.9 | ||
Total interest-bearing debt | 562.7 | 372.5 |
1Margin varies based on development and maturity of the field.
2Term may be extended for additional 36 months.
Reserve Based Lending facility
In August 2022, BW Energy signed an international Reserve Based Lending (RBL) facility of up to USD 300 million. The funds were used to finance the development of Group\u2019s oil and gas assets. The secured long-term debt facility was provided by a syndicate of five international banks and has a tenor of six years. BW Energy had a total of USD 250 million (USD 300 million) outstanding at 31 December 2024, after paying down USD 50 million during 2024. Interest is paid on a quarterly basis.
Key financial covenants for the RBL are required to be tested 30 June and 31 December for Net debt to EBITDAX ratio. Calculation dates for Field life and Loan life cover ratios are 1 April and 1 October. These covenants, applicable at levels of the borrower group as defined in the loan documentation, include the following:
\u2022Net debt to EBITDAX not to exceed 3:1
\u2022Field life cover ratio of 1.50x
\u2022Loan life cover ratio of 1.30x
In addition, a portion of annual production is required to be hedged for up to 24 months.
MaBoMosale-leaseback
In April 2024 BW Energy executed a sale and leaseback agreement with a Minsheng Financial Leasing Co entity (MSFL) for the MaBoMoproduction facility on the Dussafu licence offshore Gabon. The agreement generated USD 150 million of gross sales proceeds which are presented under financing activities in the consolidated statement of cash flows. The initial lease term is 84 months, after which BW Energy may repurchase the asset for USD 45 million, or the parties may agree to extend the lease term for an additional 36 months, in which case the purchase price will be USD 1 at the end of the term. Interest and principal are paid on a quarterly basis. The transaction did not qualify for sale accounting under IFRS 16 Leases guidance.
The transaction provided net USD 110 million of liquidity to BW Energy, in line with the working interest in the Dussafu licence, after distributing USD 40 million to other JV participants in the Dussafu licence (refer to note 12). The proceeds are used to finance the execution of BW Energy\u2019s growth strategy including the continuing development projects in Gabon.
The Group is obligated to maintain an equity to total assets ratio of 25% and the liquidity of USD 25 million at 30 June and 31 December. The liquidity is measured as the sum of cash and cash equivalents and also includes the undrawn committed credit lines available to the Group.
Senior unsecured callable bonds
In June 2024, the Company completed the private placement of USD 100 million of new five-year senior unsecured bonds with a coupon rate of 10% per annum. Net proceeds from this bond issue are used for general corporate purposes. The bonds were listed on Euronext Oslo B\u00f8rs and started trading in November 2024. Interest is paid on a semi-annual basis.
BW Energy is obligated to maintain free and available liquidity of no less than USD 50 million at all times and as of each quarter end, either have a book equity to total assets ratio of no less 30%, or book equity of no less than USD 500 million. Liquidity for this purpose is measured as cash and cash equivalents, undrawn committed credit lines available for general corporate purposes and crude oil receivables that are due no more than 30 days after the relevant date from the customers with Baa2 or higher credit rating.
Golfinho prepayment facility and offtake agreement
In July 2023, BW Energy entered into an oil prepayment facility agreement for up to USD 80 million with a leading commodity trading company. The prepayment facility had a term of one year with an option to extend the term based on the mutual agreement between BW Energy and the commodity trader. In March 2024, the parties agreed to extend the term and increased the borrowing for an additional USD 40 million.
This prepayment facility was drawn in full and used to finance the acquisition of the oil and gas assets in Brazil and other development costs. As part of the transaction, BW Energy also entered into an offtake agreement to sell the crude oil produced from the Golfinho field to the commodity trader during the term of the facility. The repayment of the outstanding principal and accrued interest is made by applying 18\u201325% of the crude oil sale proceeds for designated transactions with this commodity trader.
BW Energy was not in breach of any financial covenants under any of the existing debt arrangements at 31 December 2024.
Reconciliation of movements of liabilities and equity to cash flows arising from financing activities
USD MILLION | Interest-bearing short-term debt | Interest-bearing long-term debt | Interest payable\u200c1 | Lease liabilities | Equity | Total |
Balance at 1 January 2024 | 79.9 | 292.6 | 2.9 | 146.5 | 697.6 | 1,219.5 |
Proceeds from interest-bearing debt | 55.0 | 305.0 | - | - | - | 360.0 |
Repayment of interest-bearing debt | (40.0) | (127.5) | - | - | - | (167.5) |
Transaction costs related to borrowings | (0.5) | (3.6) | - | - | - | (4.1) |
Interest paid | - | - | (61.6) | - | - | (61.6) |
Payment of lease liabilities | - | - | (66.3) | - | (66.3) | |
Total changes from financing cash flows | 14.5 | 173.9 | (61.6) | (66.3) | - | 60.5 |
Effects of changes in foreign exchange rate | - | - | - | (5.8) | - | (5.8) |
Other changes: | ||||||
New leases/adjustments | - | - | 40.4 | - | 40.4 | |
Loan cost amortisation | 0.2 | 1.7 | - | - | - | 1.9 |
Interest expense | - | - | 62.2 | 15.3 | - | 77.5 |
Total liability-related other changes | 0.2 | 1.7 | 62.2 | 55.7 | - | 119.8 |
Total equity-related other changes | - | - | - | - | 164.0 | 164.0 |
Balance at 31 December 2024 | 94.6 | 468.2 | 3.5 | 130.1 | 861.6 | 1,558.0 |
Balance at 1 January 2023 | 164.9 | 0.3 | 256.0 | 615.3 | 1,036.5 | |
Proceeds from interest-bearing debt | 80.0 | 129.0 | - | - | - | 209.0 |
Transaction costs related to borrowings | (0.1) | (2.6) | - | - | - | (2.7) |
Interest paid | - | - | (29.0) | - | - | (29.0) |
Payment of lease liabilities | - | - | - | (48.2) | - | (48.2) |
Total changes from financing cash flows | 79.9 | 126.4 | (29.0) | (48.2) | - | 129.1 |
Effects of changes in foreign exchange rate | - | - | - | 0.9 | - | 0.9 |
Other changes: | ||||||
New leases/adjustments | - | - | - | (53.9) | - | (53.9) |
Lease payment reclassified to investing activities | - | - | - | (25.0) | - | (25.0) |
Loan cost amortisation | - | 1.3 | - | - | - | 1.3 |
Interest expense | - | - | 31.5 | 16.6 | - | 48.1 |
Total liability-related other changes | - | 1.3 | 31.5 | (62.3) | - | (29.5) |
Total equity-related other changes | - | - | - | - | 82.3 | 82.3 |
Balance at 31 December 2023 | 79.9 | 292.6 | 2.9 | 146.5 | 697.6 | 1,219.5 |
1included in Trade and other payables
Note 18\tProvisions and contingent assets and liabilities
Asset retirement obligations
BW Energy made a provision for asset retirement obligations related to future demobilisation of FPSOs, removal and decommissioning umbilicals and other production assets, plugging and abandonment of production or exploration wells and removal of other subsea equipment and facilities in Gabon and Brazil. The amount recognised is the present value of the estimated future expenditures determined in accordance with local regulations and technology, considering relevant risks and uncertainties.
During 2024, the development plan for Golfinho field was revised, resulting in postponement of the expected well decommissioning date for most wells from 2034 to 2042, which consequently decreased the present value of the abandonment obligations.
USD MILLION | Asset retirement obligations |
Provision at 1 January 2023 | 23.8 |
Change in estimates and new provisions | 193.2 |
Accretion expense | 3.3 |
Impact of change in discount rate | 3.7 |
Provision at 31 December 2023 | 224.0 |
Change in estimates and new provisions | (59.6) |
Accretion expense | 8.3 |
Impact of change in discount rate | - |
Provision at 31 December 2024 | 172.7 |
Other contingent obligations
BW Energy has remaining contingent obligations related to the acquisition of Maromba field in Brazil. The next milestone payment of USD 25 million is due at the start of drilling activities, which is expected in 2027, and the final milestone payment of USD 60 million is due at the first oil or 3 years after the start of drilling activities, whichever occurs first. These contingent considerations will be recognised when it becomes probable that the payment conditions will be satisfied.
BW Energy has contingent obligations of up to USD 125 million arising from the farmout agreement between BW Energy and ReconAfrica (refer to Note 12), if certain exploration and production milestones are met. The first USD 22.5 million is due upon successful drilling of an exploration well followed by declaration of commercial discovery. The next USD 22.5 million is due 365 days after first commercial production, an additional USD 5 million is due within 60 days from the first sale of hydrocarbons. Additional payments of USD 25 million each, for a total of up to USD 75 million, are due with each increment of USD 300 million free cash flows realised by BW Energy from its farmed interest. These contingent considerations will be recognised when it becomes probable that the payment conditions will be satisfied.
The Group recognised certain contingent liabilities in the statement of financial position arising from the acquisition of the Golfinho Cluster assets in Brazil (refer to Note 25). The nominal value of these obligations totalled USD 55 million at the time of acquisition in 2023. Certain contractual conditions were met during 2024 which resulted in a payment by BW Energy of USD 20 million in the first quarter. At 31 December 2024, the remaining contingent obligations total USD 35 million and are payable upon drilling new wells and reaching specified production targets. BW Energy recognised the contingent payments deemed to be probable at their fair value of USD 22.2 million at 31 December 2024, which is presented as part of other non-current payables in the statement of financial position. The Group evaluates payment triggers periodically and any changes in fair value estimate are recognised with an offset to intangible assets. The accretion expense associated with the passage of time is recognised as financial expense.
Note 18\tProvisions and contingent assets and liabilities
Asset retirement obligations
BW Energy made a provision for asset retirement obligations related to future demobilisation of FPSOs, removal and decommissioning umbilicals and other production assets, plugging and abandonment of production or exploration wells and removal of other subsea equipment and facilities in Gabon and Brazil. The amount recognised is the present value of the estimated future expenditures determined in accordance with local regulations and technology, considering relevant risks and uncertainties.
During 2024, the development plan for Golfinho field was revised, resulting in postponement of the expected well decommissioning date for most wells from 2034 to 2042, which consequently decreased the present value of the abandonment obligations.
USD MILLION | Asset retirement obligations |
Provision at 1 January 2023 | 23.8 |
Change in estimates and new provisions | 193.2 |
Accretion expense | 3.3 |
Impact of change in discount rate | 3.7 |
Provision at 31 December 2023 | 224.0 |
Change in estimates and new provisions | (59.6) |
Accretion expense | 8.3 |
Impact of change in discount rate | - |
Provision at 31 December 2024 | 172.7 |
Other contingent obligations
BW Energy has remaining contingent obligations related to the acquisition of Maromba field in Brazil. The next milestone payment of USD 25 million is due at the start of drilling activities, which is expected in 2027, and the final milestone payment of USD 60 million is due at the first oil or 3 years after the start of drilling activities, whichever occurs first. These contingent considerations will be recognised when it becomes probable that the payment conditions will be satisfied.
BW Energy has contingent obligations of up to USD 125 million arising from the farmout agreement between BW Energy and ReconAfrica (refer to Note 12), if certain exploration and production milestones are met. The first USD 22.5 million is due upon successful drilling of an exploration well followed by declaration of commercial discovery. The next USD 22.5 million is due 365 days after first commercial production, an additional USD 5 million is due within 60 days from the first sale of hydrocarbons. Additional payments of USD 25 million each, for a total of up to USD 75 million, are due with each increment of USD 300 million free cash flows realised by BW Energy from its farmed interest. These contingent considerations will be recognised when it becomes probable that the payment conditions will be satisfied.
The Group recognised certain contingent liabilities in the statement of financial position arising from the acquisition of the Golfinho Cluster assets in Brazil (refer to Note 25). The nominal value of these obligations totalled USD 55 million at the time of acquisition in 2023. Certain contractual conditions were met during 2024 which resulted in a payment by BW Energy of USD 20 million in the first quarter. At 31 December 2024, the remaining contingent obligations total USD 35 million and are payable upon drilling new wells and reaching specified production targets. BW Energy recognised the contingent payments deemed to be probable at their fair value of USD 22.2 million at 31 December 2024, which is presented as part of other non-current payables in the statement of financial position. The Group evaluates payment triggers periodically and any changes in fair value estimate are recognised with an offset to intangible assets. The accretion expense associated with the passage of time is recognised as financial expense.
Other contingent obligations
BW Energy has remaining contingent obligations related to the acquisition of Maromba field in Brazil. The next milestone payment of USD 25 million is due at the start of drilling activities, which is expected in 2027, and the final milestone payment of USD 60 million is due at the first oil or 3 years after the start of drilling activities, whichever occurs first. These contingent considerations will be recognised when it becomes probable that the payment conditions will be satisfied.
BW Energy has contingent obligations of up to USD 125 million arising from the farmout agreement between BW Energy and ReconAfrica (refer to Note 12), if certain exploration and production milestones are met. The first USD 22.5 million is due upon successful drilling of an exploration well followed by declaration of commercial discovery. The next USD 22.5 million is due 365 days after first commercial production, an additional USD 5 million is due within 60 days from the first sale of hydrocarbons. Additional payments of USD 25 million each, for a total of up to USD 75 million, are due with each increment of USD 300 million free cash flows realised by BW Energy from its farmed interest. These contingent considerations will be recognised when it becomes probable that the payment conditions will be satisfied.
The Group recognised certain contingent liabilities in the statement of financial position arising from the acquisition of the Golfinho Cluster assets in Brazil (refer to Note 25). The nominal value of these obligations totalled USD 55 million at the time of acquisition in 2023. Certain contractual conditions were met during 2024 which resulted in a payment by BW Energy of USD 20 million in the first quarter. At 31 December 2024, the remaining contingent obligations total USD 35 million and are payable upon drilling new wells and reaching specified production targets. BW Energy recognised the contingent payments deemed to be probable at their fair value of USD 22.2 million at 31 December 2024, which is presented as part of other non-current payables in the statement of financial position. The Group evaluates payment triggers periodically and any changes in fair value estimate are recognised with an offset to intangible assets. The accretion expense associated with the passage of time is recognised as financial expense.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__92": { "value": "Note 19\tTrade and other payables
USD MILLION | 2024 | 2023 |
Trade payables | 32.3 | 24.0 |
Accrued liabilities | 120.1 | 121.1 |
Trade and other payables to related parties | 44.6 | 75.3 |
Current trade and other payables | 197.0 | 220.3 |
Contingent consideration | 22.3 | 41.4 |
Other payables to related parties | 9.1 | 26.0 |
Other non-current payables | 31.4 | 67.4 |
Note 19\tTrade and other payables
USD MILLION | 2024 | 2023 |
Trade payables | 32.3 | 24.0 |
Accrued liabilities | 120.1 | 121.1 |
Trade and other payables to related parties | 44.6 | 75.3 |
Current trade and other payables | 197.0 | 220.3 |
Contingent consideration | 22.3 | 41.4 |
Other payables to related parties | 9.1 | 26.0 |
Other non-current payables | 31.4 | 67.4 |
Note 19\tTrade and other payables
USD MILLION | 2024 | 2023 |
Trade payables | 32.3 | 24.0 |
Accrued liabilities | 120.1 | 121.1 |
Trade and other payables to related parties | 44.6 | 75.3 |
Current trade and other payables | 197.0 | 220.3 |
Contingent consideration | 22.3 | 41.4 |
Other payables to related parties | 9.1 | 26.0 |
Other non-current payables | 31.4 | 67.4 |
Note 19\tTrade and other payables
USD MILLION | 2024 | 2023 |
Trade payables | 32.3 | 24.0 |
Accrued liabilities | 120.1 | 121.1 |
Trade and other payables to related parties | 44.6 | 75.3 |
Current trade and other payables | 197.0 | 220.3 |
Contingent consideration | 22.3 | 41.4 |
Other payables to related parties | 9.1 | 26.0 |
Other non-current payables | 31.4 | 67.4 |
Note 19\tTrade and other payables
USD MILLION | 2024 | 2023 |
Trade payables | 32.3 | 24.0 |
Accrued liabilities | 120.1 | 121.1 |
Trade and other payables to related parties | 44.6 | 75.3 |
Current trade and other payables | 197.0 | 220.3 |
Contingent consideration | 22.3 | 41.4 |
Other payables to related parties | 9.1 | 26.0 |
Other non-current payables | 31.4 | 67.4 |
Note 20\tLeases
BW Energy leases an FPSO, support vessels, helicopters, shore base space and office premises.
The FPSO and other support vessels have lease terms between 2 and 10 years, shore base and office premises have lease terms between 2 and 13 years. Some leases contain extension and termination options that may impact the lease term and are exercisable only by BW Energy and not by the lessors. BW Energy assesses the lease term at commence-ment, and subsequently when facts and circumstances change. For the FPSO BW Adolo, which is currently the most significant lease for the Group, BW Energy is reasonably certain that the lease term will exceed the non-cancellable contract period of 365 days and currently assesses the lease term to continue through September 2028.
Certain lease contracts involve additional services and non-lease components, such as crew cost, maintenance, supplies and other items. BW Energy has elected to not separate non-lease components for most asset classes when vendor contracts do not separately state payments for these services. As a result, these costs are reflected as part of the lease liability and right-of-use asset.
The right-of-use asset and lease liability for the leases used in joint venture operations, where BW Energy is the operator, are recognised on a gross basis as BW Energy is the primary obligor. The share of lease payments paid by joint venture partners through the joint interest billings is recognised as other income on the statement of income.
USD MILLION | 2024 | 2023 |
Right-of-use assets: | ||
At 1 January | 108.9 | 209.9 |
Additions | 35.6 | 47.4 |
Adjustments | 4.8 | (124.2) |
Depreciation expense | (47.8) | (24.2) |
At 31 December | 101.5 | 108.9 |
Lease liabilities: | ||
At 1 January | 146.5 | 256.0 |
Additions | 35.6 | 45.3 |
Adjustments | 4.8 | (99.2) |
Interest expense | 15.3 | 16.6 |
Lease payments | (66.3) | (73.1) |
Currency exchange differences | (5.8) | 0.9 |
At 31 December | 130.1 | 146.5 |
Breakdown of lease liabilities: | ||
Current lease liabilities | 43.3 | 37.9 |
Non-current lease liabilities | 86.8 | 108.6 |
Maturity breakdown (undiscounted contractual cash flows due): | ||
Within one year | 53.9 | 50.4 |
Two to five years | 87.6 | 115.7 |
After five years | 19.3 | 21.8 |
Total undiscounted lease liabilities at 31 December | 160.8 | 187.9 |
Additions in 2024 mainly relate to new support vessels used in production operations in Brazil, and the adjustments relate to remeasurements due to change in payment or lease terms.
Additions in 2023 mainly relate to helicopters and vessels used in production operations in Brazil and a new corporate office lease. Adjustments in 2023 relate to a reduction of right of use asset in the amount of USD 46 million and a reduction in lease liabilities of USD 21 million for the FPSO BW Maromba, after completing its acquisition in November 2023 (refer to Note 25). In addition, the right of use asset and lease liability were reduced for the FPSO BW Adoloin the amount of USD 82.2 million, due to reassessment of the lease extension option resulting in a lease modification.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__98": { "value": "Note 21\tCommitments & guarantees
Commitments
Commitments related to development of oil and gas fields and operations, contracted for at 31 December, but not recognised in the financial statements are as follows:
USD MILLION | 2024 | 2023 |
Nominal amount | 70.1 | 213.1 |
Guarantees
A standard security package was granted to the lenders under the Reserve Based Lending facility, as referred to in Note 17, including share security and bank account, security over the borrowing base asset as well as assignments of material contracts and insurances. The highest guarantor of this facility is BW Energy Holdings Pte. Ltd.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__99": { "value": "Note 22\tRelated parties
BW Energy Holdings Limited \u2013 majority shareholder
Following the initial public offering and listing on the Oslo Stock Exchange of BW Energy in February 2020, BW Offshore Limited (\u2018BW Offshore\u2019) and BW Group held 38.77% and 35.13%, respectively, of the shares in BW Energy.
Over time, BW Offshore has reduced its shareholding in the Company inter alia by in-kind dividend distributions. Due to BW Group holding 49.91% of the shares in BW Offshore, the distributions from BW Offshore have resulted in BW Group\u2019s ownership in BW Energy increasing to 39.90% on 28 November 2023 (the date of the last receipt of dividend in-kind).
Based on BW Offshore\u2019s dividend policy, which implied in-kind distributions of BW Energy shares, BW Group expected to continue receiving such shares on a quarterly basis. If the mandatory offer obligation was triggered by an in-kind dividend distribution, then the market price for the shares at the time the dividend is received would be relevant for determination of the minimum offer price for the mandatory offer. To procure that the price to be offered is predictable to BW Group rather than being subject to the market conditions for BW Energy shares at the time of the next in-kind dividend distribution by BW Offshore, BW Group purchased 250,000 shares of BW Energy on 29 November 2023 to pass the 40% mandatory offer threshold and to make the Offer on that basis.
The Offer valued the entire issued share capital of BW Energy at approximately NOK 6.97 billion. The Offer Price was close to the 90-day volume weighted average price (VWAP) of the shares prior to the release of BW Energy\u2019s third quarter 2023 results. The Offer was accepted for a total of 30,589,179 shares, which, together with the 103,202,470 shares already held by BW Group, resulted in an ownership of 51.86% of the issued share capital and voting rights in the Company. The remaining 58,111,461 (22.52%) shares of BW Energy were acquired by BW Group in January 2024 for NOK 32 per share.
In June 2024, under a planned corporate restructuring, BW Group sold all its shares in the Company to BW Energy Holdings. Both BW Energy Holdings and BW Group are incorporated in Bermuda and controlled by Sohmen-Pao family interests. In September 2024, BW Group acquired additional 5,440,887 shares of the Company and agreed to sell the same number of shares to BW Energy Holdings. Following these transactions BW Energy Holdings owns 197,343,997 shares or approximately 76.49% in the Company.
Senior unsecured callable bonds
BW Group Limited and Carl K. Arnet, CEO of BW Energy, subscribed to 32,000 bonds at a price of USD 1,000 per bond and an aggregate nominal value of USD 32,000,000, during the initial placement of senior unsecured callable bonds in June 2024.
IP agreement with Seaboard LLC
In 2018, BW Energy entered into an agreement with Seaboard Production Partners, LLC (SPP) for the transfer of intellectual property, including but not limited to development plans, reservoir and geological analysis and economic modelling to be utilised in the development of the Dussafu licence area. The manager, also a shareholder of SPP, is now a part of the management of BW Energy. The agreement is built on an earn-out model and entitles SPP to further payments upon meeting certain performance targets. Maximum nominal payment amount is USD 75 million, with USD 18.8 million remaining unpaid at 31 December 2024.
FPSO BW Adolo
In May 2018, BW Energy entered into a bareboat charter agreement with BW Adolo Pte. Ltd. for the FPSO Adolo, and an agreement with Tinworth Gabon S.A. for the operation and maintenance of this FPSO during the charter period. Both companies are subsidiaries of BW Offshore Limited.
FPSO BW Maromba
In November 2023, BW Energy took ownership of the FPSO Polvo,now named BW Marombafrom BW Offshore, refer to Note25.
In addition, BW Energy may also purchase or provide other management services to and from BW Offshore Group. The carrying amounts of related party receivables and payables are in USD.
Related party transactions and outstanding balances:
2024 | 2023 | |
Transaction values for the year: | ||
Other income | 1.5 | 2.6 |
Purchases of goods and services: | ||
FPSO Marombaacquisition | - | 52.3 |
FPSO Adololease and operating costs | 117.2 | 100.7 |
Management and other services | 6.7 | 9.0 |
Financial items | 6.3 | 2.0 |
Balances outstanding as at 31 December | ||
Assets: | ||
Trade and other current assets | 0.2 | 0.7 |
Liabilities: | ||
Interest-bearing debt | 32.0 | 0.0 |
Long-term lease liabilities | 63.1 | 81.6 |
Other non-current liabilities | 9.1 | 26.0 |
Trade and other payables | 44.6 | 75.3 |
Short-term lease liabilities | 22.34 | 21.72 |
Note 23\tFinancial risk management
BW Energy\u2019s finance division has the responsibility for financing, treasury management and financial risk management.
Financial risk factors
Business activities expose BW Energy to a variety of financial risks: market risk (including currency risk, commodity risk and interest rate risk), credit risk, and liquidity risk.
The Group\u2019s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on its financial performance. A finance management team led by the Chief Financial Officer identifies and evaluates financial risks in close co-operation with operating units. The activities of the finance management team are governed by policies approved by the Board of Directors for overall risk management, as well as policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk, and investing excess liquidity. The finance management team reports to Top Management, the Audit Committee and the Board of Directors on the status of activities on a regular basis.
BW Energy does not use financial instruments, including financial derivatives, for trading purposes.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect BW Energy\u2019s income or the value of its holding of financial instruments.
Foreign currency risk
The functional currency of the Company and all subsidiaries is USD. In general, operating revenues and a significant portion of operating expenses are denominated in USD. BW Energy is exposed to expenses and investments incurred in currencies other than USD; the major currencies being Central Africa CFA Franc (XAF) and Brazilian Real (BRL). Operating expenses denominated in \u200cXAF or BRL constitute a part of total operating expenses. Consequently, fluctuations in the exchange rate of \u200cXAF or BRL may have impact on the financial statements. BW Energy has no financial instruments for currency hedging at 31 December 2024 that manage risk actively.
Interest rate risk
BW Energy is exposed to interest rate risk through its financing activities. Most of the Group\u2019s interest-bearing debt has floating interest rate terms, exposing the Group to changes in the market rates.
BW Energy holds an interest rate swap with a nominal value of USD 50 million with a maturity in 2028. The interest swap rate is at 3.91% and is used to hedge future cash outflow for interest payments. The market value of the interest rate swap was positive USD 0.3 million at 31 December 2024 (negative USD 0.4 million). Previously, BW Energy held another interest rate swap agreement with a nominal value of USD 50 million with a maturity in 2030 which was terminated in June 2023.
A possible change of one hundred basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below.
Profit or loss | ||
USD MILLION | 100 bp increase | 100 bp decrease |
31 December 2024 | ||
Interest rate swap | 1.6 | (1.6) |
Cash flow sensitivity | 1.6 | (1.6) |
31 December 2023 | ||
Interest rate swap | 2.0 | (2.0) |
Cash flow sensitivity | 2.0 | (2.0) |
Commodity price risk
BW Energy derives its revenues from the sale of crude oil produced in Gabon and Brazil. Revenue is and will continue to be exposed to fluctuations in oil prices.
BW Energy continuously evaluates and assesses opportunities for hedging as part of a prudent financial risk manage-ment process. Through the period, BW Energy entered into derivative financial instruments including swaps and options to manage volatility. These derivatives are marked to market with changes in market value recognised in the statement of income. BW Energy does not apply hedge accounting.
BW Energy undertakes hedging through crude oil derivatives that utilise Dated Brent as the underlying, the hedging volumes are determined in compliance with the internal hedging policy and financial covenants. Currently, the Group targets hedging 40% of its year 1 production, and 25% of year 2 production, on a rolling basis. BW Energy currently has approximately 5.0 million barrels hedged, comprising of about 0.2 million of swaps with a weighted average strike price of $81 per barrel, and about 4.8 million of long puts/collars with a weighted average strike price of $55 per barrel.
Fair value of the crude oil contracts amounted to positive USD 1.9 million net at the end of 2024 (positive USD 0.7 million in 2023), the derivative assets and liabilities related to various contracts are presented gross in the statement of financial position as current and non-current assets and liabilities. Net effect of crude oil hedge contracts recognised in the statement of income in 2024 is zero (USD 0.9 million realised gains offset by USD 0.9 million of unrealised losses; positive USD 7.0 million in 2023).
Commodity price sensitivity
Based on BW Energy\u2019s net share of lifted volumes of 8.5 million barrels (5.4 million), the 10% change in the realised prices would have the following impact on the sales revenue, not considering the impact of crude oil derivative instruments:
2024 | 2023 | |||
USD MILLION | (10%) | 10% | (10%) | 10% |
Change in Brent crude price | (68.0) | 68.0 | (34.3) | 34.3 |
Credit risk
Credit risk is the risk of financial losses if a customer or counterparty to financial receivables and financial instruments fails to meet contractual obligations.
Financial guarantees, derivatives and cash deposits are only conducted with approved counterparties and predominantly with investment grade financial institutions and are governed by standard agreements (ISDA and LMA documentation).
The risk of counterparties being financially incapable of fulfilling their obligations is regarded as minor as historically there have not been any losses on receivables. The Group\u2019s customers and joint venture partners are credit worthy oil and gas companies. Crude oil was sold to three customers, with 95% of 2024 revenues from customers sold to two major international oil and gas companies.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when they become due.
BW Energy monitors the liquidity through cash flow forecasting of operational and investment activities in the short-, medium- and long-term. These plans are updated regularly for various scenarios and form part of the decision basis for the Company\u2019s management and Board of Directors.
BW Energy operates in multiple international jurisdictions and is exposed to various economic uncertainties, including taxation policies, currency controls, and foreign exchange restrictions that can impose a risk to liquidity. The Group\u2019s major source of liquidity is the operating cashflow generated from production of oil in the Dussafu licence which is subject to foreign currency regulations of the Central African Economic and Monetary Community (CEMAC).
The following tables set out the maturity profile of the Group\u2019s financial liabilities based on contractual undiscounted payments.
2024 USD MILLION | Carrying amount | 2025 | 2026\u20132029 | 2030 and beyond | Total |
Non-derivative financial liabilities | |||||
Reserve Based Lending facility | 243.8 | - | 250.0 | - | 250.0 |
Golfinho prepayment facility | 80.0 | 80.0 | - | - | 80.0 |
MaBoMosale-leaseback | 140.3 | 15.0 | 60.0 | 67.5 | 142.5 |
Senior unsecured callable bonds | 98.6 | - | 100.0 | - | 100.0 |
Interest payments | 3.6 | 51.5 | 131.3 | 14.0 | 196.8 |
Asset retirement obligations | 172.7 | - | - | 325.1 | 325.1 |
Other non-current liabilities | 31.4 | 4.6 | 30.4 | - | 35.0 |
Lease liabilities | 130.1 | 53.9 | 87.6 | 19.3 | 160.8 |
Trade and other payables, less accrued interest\u200c1 | 193.4 | 193.4 | - | - | 193.4 |
1,093.9 | 398.4 | 659.3 | 425.9 | 1,483.6 | |
Derivative financial liabilities: | |||||
Interest rate swaps | (0.3) | - | (0.3) | - | (0.3) |
Crude oil hedges | (1.9) | (2.1) | 0.2 | (1.9) | |
Total | (2.2) | (2.1) | (0.1) | - | (2.2) |
1Accrued interest and future payments are reflected as part of the Interest payments.
2023 USD MILLION | Carrying amount | 2024 | 2025\u20132028 | 2029 and beyond | Total |
Non-derivative financial liabilities | |||||
Reserve Based Lending facility | 292.6 | - | 300.0 | - | 300.0 |
Golfinho prepayment facility | 79.9 | 80.0 | - | - | 80.0 |
Interest payments | 2.9 | 38.5 | 138.0 | - | 176.5 |
Asset retirement obligations | 224.0 | - | 50.1 | 271.1 | 321.2 |
Other non-current liabilities | 67.4 | 13.6 | 28.4 | 55.0 | 97.0 |
Lease liabilities | 146.5 | 50.4 | 115.6 | 23.2 | 189.2 |
Trade and other payables, less accrued interest\u200c1 | 217.4 | 217.4 | - | - | 217.4 |
1,030.7 | 399.9 | 632.1 | 349.3 | 1,381.3 | |
Derivative financial liabilities: | |||||
Interest rate swaps | 0.4 | - | 0.4 | - | 0.4 |
Crude oil hedges | (0.7) | (0.6) | (0.1) | - | (0.7) |
Total | (0.3) | (0.6) | 0.3 | - | (0.3) |
1Accrued interest and future payments are reflected as part of the Interest payments.
Fair values
The Group classifies fair value measurements by employing a value hierarchy that reflects the significance of the input used in preparing the measurements. The fair value hierarchy consists of the following levels:
\u2022Level 1 \u2013 input in the form of quoted prices (unadjusted) in active markets for identical assets or liabilities
\u2022Level 2 - input other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)
\u2022Level 3 -input for the asset or liability is not based on observable market data (unobservable inputs)
The fair value of commodity derivatives is determined using the forward Brent blend curve at the end of the reporting period (level 2). The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves (level 2). The value of listed equity securities is based on the trading prices in the active stock exchange (level 1).
The following tables present the carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and liabilities measured at amortised cost is not included if the carrying amount is a reasonable approximation of fair value.
2024 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 2.9 | - | - | 2.9 | - | 2.9 | - | 2.9 | |
Interest rate swaps used for hedging | 0.3 | - | - | 0.3 | - | 0.3 | - | 0.3 | |
Listed equity securities | - | 13.1 | - | 13.1 | 13.1 | - | - | 13.1 | |
3.3 | 13.1 | - | 16.3 | 13.1 | 3.3 | - | 16.3 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 65.0 | 65.0 | - | - | - | - | |
Trade and other receivables | - | - | 68.6 | 68.6 | - | - | - | - | |
Cash and cash equivalents | - | - | 221.8 | 221.8 | - | - | - | - | |
- | - | 355.4 | 355.4 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Crude oil hedges | (1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | |
(1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (468.2) | (468.2) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (94.6) | (94.6) | - | - | - | - | |
Asset retirement obligations | - | - | (172.7) | (172.7) | - | - | - | - | |
Lease liabilities | - | - | (130.1) | (130.1) | - | - | - | - | |
Other non-current liabilities | - | - | (31.4) | (31.4) | - | - | - | - | |
Trade and other payables | - | - | (197.0) | (197.0) | - | - | - | - | |
- | - | (1,094.0) | (1,094.0) | - | - | - | - |
2023 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 0.7 | - | - | 0.7 | - | 0.7 | - | 0.7 | |
0.7 | - | - | 0.7 | - | 0.7 | - | 0.7 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 34.2 | 34.2 | - | - | - | - | |
Trade and other receivables | - | - | 51.7 | 51.7 | - | - | - | - | |
Cash and cash equivalents | - | - | 194.2 | 194.2 | - | - | - | - | |
- | - | 280.1 | 280.1 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.4) | - | - | (0.4) | - | (0.4) | - | (0.4) | |
(0.4) | - | - | (0.4) | - | (0.4) | - | (0.4) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (292.6) | (292.6) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (79.9) | (79.9) | - | - | - | - | |
Asset retirement obligations | - | - | (224.0) | (224.0) | - | - | - | - | |
Lease liabilities | - | - | (146.5) | (146.5) | - | - | - | - | |
Other non-current liabilities | - | - | (67.4) | (67.4) | - | - | - | - | |
Trade and other payables | - | - | (220.3) | (220.3) | - | - | - | - | |
- | - | (1,030.7) | (1,030.7) | - | - | - | - |
Capital structure and equity
The primary objective of the capital structure management is to maximise return to the owners by ensuring competitive conditions for both BW Energy\u2019s own capital and borrowed capital.
The Board continuously evaluates BW Energy\u2019s capital structure, ensuring a capital and debt structure that is appro-priate to the Group\u2019s objective, strategy, and risk profile. This involves monitoring available funding sources and related cost of capital.
BW Energy has access to capital markets, including bank and bond financing and seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowing and the advantages and security afforded by a sound capital position. BW Energy seeks to optimise its capital structure by balancing the return on equity against liquidity requirements.
BW Energy monitors changes in financing needs, risk, assets and cash flows, and evaluates the capital structure continuously. To maintain the desired capital structure, BW Energy considers various types of capital transactions, including, purchase or issue new shares or debt instruments, sell assets or pay back capital to the owners.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect BW Energy\u2019s income or the value of its holding of financial instruments.
Foreign currency risk
The functional currency of the Company and all subsidiaries is USD. In general, operating revenues and a significant portion of operating expenses are denominated in USD. BW Energy is exposed to expenses and investments incurred in currencies other than USD; the major currencies being Central Africa CFA Franc (XAF) and Brazilian Real (BRL). Operating expenses denominated in \u200cXAF or BRL constitute a part of total operating expenses. Consequently, fluctuations in the exchange rate of \u200cXAF or BRL may have impact on the financial statements. BW Energy has no financial instruments for currency hedging at 31 December 2024 that manage risk actively.
Interest rate risk
BW Energy is exposed to interest rate risk through its financing activities. Most of the Group\u2019s interest-bearing debt has floating interest rate terms, exposing the Group to changes in the market rates.
BW Energy holds an interest rate swap with a nominal value of USD 50 million with a maturity in 2028. The interest swap rate is at 3.91% and is used to hedge future cash outflow for interest payments. The market value of the interest rate swap was positive USD 0.3 million at 31 December 2024 (negative USD 0.4 million). Previously, BW Energy held another interest rate swap agreement with a nominal value of USD 50 million with a maturity in 2030 which was terminated in June 2023.
A possible change of one hundred basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below.
Profit or loss | ||
USD MILLION | 100 bp increase | 100 bp decrease |
31 December 2024 | ||
Interest rate swap | 1.6 | (1.6) |
Cash flow sensitivity | 1.6 | (1.6) |
31 December 2023 | ||
Interest rate swap | 2.0 | (2.0) |
Cash flow sensitivity | 2.0 | (2.0) |
Commodity price risk
BW Energy derives its revenues from the sale of crude oil produced in Gabon and Brazil. Revenue is and will continue to be exposed to fluctuations in oil prices.
BW Energy continuously evaluates and assesses opportunities for hedging as part of a prudent financial risk manage-ment process. Through the period, BW Energy entered into derivative financial instruments including swaps and options to manage volatility. These derivatives are marked to market with changes in market value recognised in the statement of income. BW Energy does not apply hedge accounting.
BW Energy undertakes hedging through crude oil derivatives that utilise Dated Brent as the underlying, the hedging volumes are determined in compliance with the internal hedging policy and financial covenants. Currently, the Group targets hedging 40% of its year 1 production, and 25% of year 2 production, on a rolling basis. BW Energy currently has approximately 5.0 million barrels hedged, comprising of about 0.2 million of swaps with a weighted average strike price of $81 per barrel, and about 4.8 million of long puts/collars with a weighted average strike price of $55 per barrel.
Fair value of the crude oil contracts amounted to positive USD 1.9 million net at the end of 2024 (positive USD 0.7 million in 2023), the derivative assets and liabilities related to various contracts are presented gross in the statement of financial position as current and non-current assets and liabilities. Net effect of crude oil hedge contracts recognised in the statement of income in 2024 is zero (USD 0.9 million realised gains offset by USD 0.9 million of unrealised losses; positive USD 7.0 million in 2023).
Commodity price sensitivity
Based on BW Energy\u2019s net share of lifted volumes of 8.5 million barrels (5.4 million), the 10% change in the realised prices would have the following impact on the sales revenue, not considering the impact of crude oil derivative instruments:
2024 | 2023 | |||
USD MILLION | (10%) | 10% | (10%) | 10% |
Change in Brent crude price | (68.0) | 68.0 | (34.3) | 34.3 |
Foreign currency risk
The functional currency of the Company and all subsidiaries is USD. In general, operating revenues and a significant portion of operating expenses are denominated in USD. BW Energy is exposed to expenses and investments incurred in currencies other than USD; the major currencies being Central Africa CFA Franc (XAF) and Brazilian Real (BRL). Operating expenses denominated in \u200cXAF or BRL constitute a part of total operating expenses. Consequently, fluctuations in the exchange rate of \u200cXAF or BRL may have impact on the financial statements. BW Energy has no financial instruments for currency hedging at 31 December 2024 that manage risk actively.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__103": { "value": "Credit risk
Credit risk is the risk of financial losses if a customer or counterparty to financial receivables and financial instruments fails to meet contractual obligations.
Financial guarantees, derivatives and cash deposits are only conducted with approved counterparties and predominantly with investment grade financial institutions and are governed by standard agreements (ISDA and LMA documentation).
The risk of counterparties being financially incapable of fulfilling their obligations is regarded as minor as historically there have not been any losses on receivables. The Group\u2019s customers and joint venture partners are credit worthy oil and gas companies. Crude oil was sold to three customers, with 95% of 2024 revenues from customers sold to two major international oil and gas companies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__104": { "value": "Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when they become due.
BW Energy monitors the liquidity through cash flow forecasting of operational and investment activities in the short-, medium- and long-term. These plans are updated regularly for various scenarios and form part of the decision basis for the Company\u2019s management and Board of Directors.
BW Energy operates in multiple international jurisdictions and is exposed to various economic uncertainties, including taxation policies, currency controls, and foreign exchange restrictions that can impose a risk to liquidity. The Group\u2019s major source of liquidity is the operating cashflow generated from production of oil in the Dussafu licence which is subject to foreign currency regulations of the Central African Economic and Monetary Community (CEMAC).
The following tables set out the maturity profile of the Group\u2019s financial liabilities based on contractual undiscounted payments.
2024 USD MILLION | Carrying amount | 2025 | 2026\u20132029 | 2030 and beyond | Total |
Non-derivative financial liabilities | |||||
Reserve Based Lending facility | 243.8 | - | 250.0 | - | 250.0 |
Golfinho prepayment facility | 80.0 | 80.0 | - | - | 80.0 |
MaBoMosale-leaseback | 140.3 | 15.0 | 60.0 | 67.5 | 142.5 |
Senior unsecured callable bonds | 98.6 | - | 100.0 | - | 100.0 |
Interest payments | 3.6 | 51.5 | 131.3 | 14.0 | 196.8 |
Asset retirement obligations | 172.7 | - | - | 325.1 | 325.1 |
Other non-current liabilities | 31.4 | 4.6 | 30.4 | - | 35.0 |
Lease liabilities | 130.1 | 53.9 | 87.6 | 19.3 | 160.8 |
Trade and other payables, less accrued interest\u200c1 | 193.4 | 193.4 | - | - | 193.4 |
1,093.9 | 398.4 | 659.3 | 425.9 | 1,483.6 | |
Derivative financial liabilities: | |||||
Interest rate swaps | (0.3) | - | (0.3) | - | (0.3) |
Crude oil hedges | (1.9) | (2.1) | 0.2 | (1.9) | |
Total | (2.2) | (2.1) | (0.1) | - | (2.2) |
1Accrued interest and future payments are reflected as part of the Interest payments.
2023 USD MILLION | Carrying amount | 2024 | 2025\u20132028 | 2029 and beyond | Total |
Non-derivative financial liabilities | |||||
Reserve Based Lending facility | 292.6 | - | 300.0 | - | 300.0 |
Golfinho prepayment facility | 79.9 | 80.0 | - | - | 80.0 |
Interest payments | 2.9 | 38.5 | 138.0 | - | 176.5 |
Asset retirement obligations | 224.0 | - | 50.1 | 271.1 | 321.2 |
Other non-current liabilities | 67.4 | 13.6 | 28.4 | 55.0 | 97.0 |
Lease liabilities | 146.5 | 50.4 | 115.6 | 23.2 | 189.2 |
Trade and other payables, less accrued interest\u200c1 | 217.4 | 217.4 | - | - | 217.4 |
1,030.7 | 399.9 | 632.1 | 349.3 | 1,381.3 | |
Derivative financial liabilities: | |||||
Interest rate swaps | 0.4 | - | 0.4 | - | 0.4 |
Crude oil hedges | (0.7) | (0.6) | (0.1) | - | (0.7) |
Total | (0.3) | (0.6) | 0.3 | - | (0.3) |
1Accrued interest and future payments are reflected as part of the Interest payments.
Fair values
The Group classifies fair value measurements by employing a value hierarchy that reflects the significance of the input used in preparing the measurements. The fair value hierarchy consists of the following levels:
\u2022Level 1 \u2013 input in the form of quoted prices (unadjusted) in active markets for identical assets or liabilities
\u2022Level 2 - input other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)
\u2022Level 3 -input for the asset or liability is not based on observable market data (unobservable inputs)
The fair value of commodity derivatives is determined using the forward Brent blend curve at the end of the reporting period (level 2). The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves (level 2). The value of listed equity securities is based on the trading prices in the active stock exchange (level 1).
The following tables present the carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and liabilities measured at amortised cost is not included if the carrying amount is a reasonable approximation of fair value.
2024 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 2.9 | - | - | 2.9 | - | 2.9 | - | 2.9 | |
Interest rate swaps used for hedging | 0.3 | - | - | 0.3 | - | 0.3 | - | 0.3 | |
Listed equity securities | - | 13.1 | - | 13.1 | 13.1 | - | - | 13.1 | |
3.3 | 13.1 | - | 16.3 | 13.1 | 3.3 | - | 16.3 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 65.0 | 65.0 | - | - | - | - | |
Trade and other receivables | - | - | 68.6 | 68.6 | - | - | - | - | |
Cash and cash equivalents | - | - | 221.8 | 221.8 | - | - | - | - | |
- | - | 355.4 | 355.4 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Crude oil hedges | (1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | |
(1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (468.2) | (468.2) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (94.6) | (94.6) | - | - | - | - | |
Asset retirement obligations | - | - | (172.7) | (172.7) | - | - | - | - | |
Lease liabilities | - | - | (130.1) | (130.1) | - | - | - | - | |
Other non-current liabilities | - | - | (31.4) | (31.4) | - | - | - | - | |
Trade and other payables | - | - | (197.0) | (197.0) | - | - | - | - | |
- | - | (1,094.0) | (1,094.0) | - | - | - | - |
2023 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 0.7 | - | - | 0.7 | - | 0.7 | - | 0.7 | |
0.7 | - | - | 0.7 | - | 0.7 | - | 0.7 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 34.2 | 34.2 | - | - | - | - | |
Trade and other receivables | - | - | 51.7 | 51.7 | - | - | - | - | |
Cash and cash equivalents | - | - | 194.2 | 194.2 | - | - | - | - | |
- | - | 280.1 | 280.1 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.4) | - | - | (0.4) | - | (0.4) | - | (0.4) | |
(0.4) | - | - | (0.4) | - | (0.4) | - | (0.4) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (292.6) | (292.6) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (79.9) | (79.9) | - | - | - | - | |
Asset retirement obligations | - | - | (224.0) | (224.0) | - | - | - | - | |
Lease liabilities | - | - | (146.5) | (146.5) | - | - | - | - | |
Other non-current liabilities | - | - | (67.4) | (67.4) | - | - | - | - | |
Trade and other payables | - | - | (220.3) | (220.3) | - | - | - | - | |
- | - | (1,030.7) | (1,030.7) | - | - | - | - |
Fair values
The Group classifies fair value measurements by employing a value hierarchy that reflects the significance of the input used in preparing the measurements. The fair value hierarchy consists of the following levels:
\u2022Level 1 \u2013 input in the form of quoted prices (unadjusted) in active markets for identical assets or liabilities
\u2022Level 2 - input other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)
\u2022Level 3 -input for the asset or liability is not based on observable market data (unobservable inputs)
The fair value of commodity derivatives is determined using the forward Brent blend curve at the end of the reporting period (level 2). The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves (level 2). The value of listed equity securities is based on the trading prices in the active stock exchange (level 1).
The following tables present the carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and liabilities measured at amortised cost is not included if the carrying amount is a reasonable approximation of fair value.
2024 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 2.9 | - | - | 2.9 | - | 2.9 | - | 2.9 | |
Interest rate swaps used for hedging | 0.3 | - | - | 0.3 | - | 0.3 | - | 0.3 | |
Listed equity securities | - | 13.1 | - | 13.1 | 13.1 | - | - | 13.1 | |
3.3 | 13.1 | - | 16.3 | 13.1 | 3.3 | - | 16.3 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 65.0 | 65.0 | - | - | - | - | |
Trade and other receivables | - | - | 68.6 | 68.6 | - | - | - | - | |
Cash and cash equivalents | - | - | 221.8 | 221.8 | - | - | - | - | |
- | - | 355.4 | 355.4 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Crude oil hedges | (1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | |
(1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (468.2) | (468.2) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (94.6) | (94.6) | - | - | - | - | |
Asset retirement obligations | - | - | (172.7) | (172.7) | - | - | - | - | |
Lease liabilities | - | - | (130.1) | (130.1) | - | - | - | - | |
Other non-current liabilities | - | - | (31.4) | (31.4) | - | - | - | - | |
Trade and other payables | - | - | (197.0) | (197.0) | - | - | - | - | |
- | - | (1,094.0) | (1,094.0) | - | - | - | - |
2023 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 0.7 | - | - | 0.7 | - | 0.7 | - | 0.7 | |
0.7 | - | - | 0.7 | - | 0.7 | - | 0.7 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 34.2 | 34.2 | - | - | - | - | |
Trade and other receivables | - | - | 51.7 | 51.7 | - | - | - | - | |
Cash and cash equivalents | - | - | 194.2 | 194.2 | - | - | - | - | |
- | - | 280.1 | 280.1 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.4) | - | - | (0.4) | - | (0.4) | - | (0.4) | |
(0.4) | - | - | (0.4) | - | (0.4) | - | (0.4) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (292.6) | (292.6) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (79.9) | (79.9) | - | - | - | - | |
Asset retirement obligations | - | - | (224.0) | (224.0) | - | - | - | - | |
Lease liabilities | - | - | (146.5) | (146.5) | - | - | - | - | |
Other non-current liabilities | - | - | (67.4) | (67.4) | - | - | - | - | |
Trade and other payables | - | - | (220.3) | (220.3) | - | - | - | - | |
- | - | (1,030.7) | (1,030.7) | - | - | - | - |
Capital structure and equity
The primary objective of the capital structure management is to maximise return to the owners by ensuring competitive conditions for both BW Energy\u2019s own capital and borrowed capital.
The Board continuously evaluates BW Energy\u2019s capital structure, ensuring a capital and debt structure that is appro-priate to the Group\u2019s objective, strategy, and risk profile. This involves monitoring available funding sources and related cost of capital.
BW Energy has access to capital markets, including bank and bond financing and seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowing and the advantages and security afforded by a sound capital position. BW Energy seeks to optimise its capital structure by balancing the return on equity against liquidity requirements.
BW Energy monitors changes in financing needs, risk, assets and cash flows, and evaluates the capital structure continuously. To maintain the desired capital structure, BW Energy considers various types of capital transactions, including, purchase or issue new shares or debt instruments, sell assets or pay back capital to the owners.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__108": { "value": "Note 24\tList of subsidiaries
Subsidiaries | Country of incorporation | Ownership 2024 | Ownership 2023 |
BW Energy Dubai Holding Limited | Bermuda | 100% | 100% |
BW Energy Gabon South Holding Limited | Bermuda | 100% | - |
BW Energy Mabomo Limited | Bermuda | 100% | 100% |
BW Energy OI Limited | Bermuda | 100% | 100% |
BW Energy PI Holding Limited | Bermuda | 100% | 100% |
BW Energy Services Limited | Bermuda | 100% | 100% |
BW Energy Trading Golfinho Ltd | Bermuda | 100% | 100% |
BW Energy Trading Holdings Ltd | Bermuda | 100% | 100% |
BW Energy Trading Ltd | Bermuda | 100% | 100% |
BW Energy Maromba do Brasil Ltda. | Brazil | 100% | 100% |
BW Energy Peixe Ltda. | Brazil | 100% | 100% |
BW Energy Gabon S.A. | Gabon | 100% | 100% |
BW Energy Dussafu B.V. | Netherlands | 100% | 100% |
BW Energy Maromba B.V. | Netherlands | 100% | 100% |
BW Energy Norway Management AS | Norway | 100% | 100% |
BWE Mgmt Portugal, LDA | Portugal | 100% | - |
BW Energy Holdings Pte Ltd | Singapore | 100% | 100% |
BW Energy Production Pte. Ltd | Singapore | 100% | 100% |
BW Kudu Holding Pte. Ltd. | Singapore | 100% | 100% |
BW Maromba Holdings Pte. Ltd | Singapore | 100% | 100% |
Bard Wisdom Projects Management FZE | UAE | 100% | 100% |
BW Energy Rundu Limited | United Kingdom | 100% | - |
BW Kudu Limited | United Kingdom | 100% | - |
BW Energy USA Management Inc. | USA | 100% | 100% |
Note 25\tAcquisitions and disposals
Acquisition of ReconAfrica shares
In August 2024, BW Energy acquired an aggregate of 17,600,000 common shares and 17,600,000 common share purchase warrants of Reconnaissance Energy Africa Ltd. (\u2018ReconAfrica\u2019) for approximately USD 16 million, refer to Note 12for additional information.
Acquisition of FPSO BW Maromba
In April 2022, BW Energy signed an agreement to purchase the FPSO Polvo(renamed to BW Maromba) from BW Offshore for a total consideration of USD 50 million, split by USD 5 million in one year charter hire and USD 45 million for purchase of the vessel. In November 2023, BW Energy exercised its purchase option and obtained title to the FPSO. USD 30.8 million, including accrued interest, was paid in October 2023, and the remaining USD 21.5 million, including accrued interest was paid in April 2024.
The FPSO BW Marombawill be used in the development of the Maromba project offshore Brazil after completing the necessary upgrades and modi-fications. The final investment decision is subject to certain conditions precedent, including completion of the project financing.
Acquisition of FPSO Cidade de Vit\u00f3ria
In November 2023, BW Energy completed the acquisition of the FPSO Cidade de Vit\u00f3riafrom Saipem for a total consideration of USD 73.5 million, including agreed-upon contractual adjustments and taxes, with USD 41 million paid in 2023, USD 23 million paid in 2024 and an additional USD 5.8 million payable in monthly instalments through March 2025.
This asset acquisition resulted in an increase of USD 67.2 million in property, plant and equipment and USD 5.9 million in inventory.
Acquisition of Golfinho and Camarupim Clusters offshore Brazil
In August 2023, BW Energy completed the acquisition of Golfinho and Camarupim Clusters offshore Brazil from Petrobras for a total consideration of USD 51.4 million, including cash payment of USD 15.2 million and contingent consideration estimated at USD 36.2 million. In this transaction, BW Energy acquired the 100% operated working interest in the Golfinho and Camarupim clusters and the 65% working interest in the BM-ES-23 block.
The transaction was financed through BW Energy\u2019s existing liquidity and an oil prepayment facility, with USD 12.2 million paid at closing following an initial USD 3 million paid at signing in 2022. Additionally, BW Energy agreed to future contingent payments of up to USD 55 million tied to oil price and production volume from current producing assets and development of proved undeveloped oil and gas reserves, of which USD 20 million was paid in 2024.
The transaction was accounted for as an asset acquisition and resulted in an increase of USD 142.6 million in property, plant and equipment, and intangible assets of USD 28.4 million; and an increase in asset retirement obligation of USD 153.3 million. Under the terms of the purchase and sale agreement, Petrobras will reimburse USD 40 million of the abandonment cost after completion of decommissioning for designated wells.
Note 26\tMacroeconomic and geopolitical uncertainty
Several macroeconomic factors influence BW Energy\u2019s business, such as the availability of industry products, fluc-tuations in energy prices, inflation, rising interest rates, the volatility of oil prices, and the geopolitical uncertainties stemming from global tensions.
BW Energy has a strong commitment to safety and environmental protection, aiming for zero harm in all areas of the Group\u2019s operations. The Group is focused on lowering its carbon footprint by repurposing existing production infrastructure to develop known oil and gas resources.
BW Energy anticipates that oil and gas will continue to play a crucial role in the global energy landscape for many years. The Group is dedicated to generating long-term value through a strategic approach to phased development and investment in high-yield assets. Its adaptable investment strategy is designed to withstand various market conditions, enabling BW Energy to capitalise on both immediate and future opportunities to enhance cash flow and profits.
Despite a weakening in macroeconomic factors, energy prices remain high due to geopolitical tensions, global supply issues, and inflation. In the short term, BW Energy is focused on maintaining the production from the Dussafu licence area in Gabon at approximately 40,000 barrels of oil per day. In Brazil, BW Energy is operating the Golfinho assets. These initiatives are expected to significantly boost oil production and deliver substantial value to stakeholders.
Note 27\tClimate risk
BW Energy is actively transitioning towards a lower carbon footprint, mindful of the impact from the climate change on its operations and the wider oil and gas industry. BW Energy anticipates ongoing regulatory focus on climate issues and greenhouse gas emissions, which could lead to revised taxation and other regulations, higher compliance costs, and changing investor and lender attitudes.
Such regulatory changes may affect the Group\u2019s business and financial outlook. BW Energy is vigilant in monitoring these developments across the operational regions. Additionally, the shift towards alternative energy sources could decrease demand and prices for oil and gas, potentially leading to asset value impairments. To ensure resilience, BW Energy evaluates its assets under various oil price scenarios.
The future investments rely on operational cash flow, capital, and borrowing. The rising concern over climate change might increase capital costs as some investors and lenders have started to limit their engagement with the oil and gas sector. To counteract this, BW Energy engages with a diverse group of financial institutions and investors worldwide, continually revising the investment strategy to maintain a robust balance sheet.
Moreover, like most energy companies, BW Energy faces risks from climate-induced weather changes and natural disasters, which could damage infrastructure, disrupt operations, and increase costs. Severe weather might also hinder drilling efforts and production. BW Energy has insurance in place to safeguard assets and revenues against such contingencies.
Note 29\tReserves (unaudited)
BW Energy engaged Netherland, Sewell & Associates, Inc. (NSAI) for certification of proved and probable reserves (2P).
Evaluations were based on standard petroleum engineering and evaluation principles. This includes use of standard engineering and geoscience methods, or a combination of methods, including volumetric analysis, analogy, and reservoir modelling, considered to be appropriate and necessary to classify, categorise, and estimate volumes in accordance with the 2015 PRMS definitions and guidelines. The reserves were estimated using deterministic methods.
As in all aspects of oil and gas evaluation, there are uncertainties inherent in the interpretation of engineering and geoscience data; therefore, conclusions necessarily represent only informed professional judgement.
Estimated remaining oil and gas reserves are as follows:
At 31 December 2024
mmboe | WI | 1P Gross | 1P Net | 2P Gross | 2P Net |
Developed assets: | |||||
Dussafu Marin Permit | 73.5% | 80.1 | 58.9 | 118.6 | 87.1 |
Golfinho BES-100 | 100.0% | 30.4 | 30.4 | 42.0 | 42.0 |
Total | 110.5 | 89.3 | 160.6 | 129.1 | |
Non-developed assets: | |||||
Maromba BC-20A | 95.0% | 75.0 | 71.3 | 105.4 | 100.1 |
At 31 December 2023
mmboe | WI | 1P Gross | 1P Net | 2P Gross | 2P Net |
Developed assets: | |||||
Dussafu Marin Permit | 73.5% | 66.6 | 48.9 | 94.5 | 69.4 |
Golfinho BES-100 | 100.0% | 29.4 | 29.4 | 40.3 | 40.3 |
Total | 96.0 | 78.3 | 134.8 | 109.7 | |
Non-developed assets: | |||||
Maromba BC-20A | 95.0% | 75.0 | 71.3 | 105.4 | 100.1 |
Proved reserves (1P) are those quantities of oil and gas which, by analysis of engineering and geoscience data, can be estimated with reasonable certainty to be commercially recoverable; probable reserves are those additional reserves which are less certain to be recovered than proved reserves.
Developed assets include the Dussafu and Golfinho licences. Non-developed assets include the Maromba licence, where the project final investment decision is subject to conclusion of project financing activities.
During 2024 and 2023, the reserves movements were as follows:
mmboe | Developed assets 2P\u00a0Net | Non-developed assets 2P\u00a0Net | Total 2P\u00a0Net |
At 31 December 2022 | 70.7 | 100.1 | 170.8 |
Production 2023 | (5.9) | - | (5.9) |
Acquisitions | 40.3 | - | 40.3 |
Discoveries | 4.9 | - | 4.9 |
Revision of previous estimate | (0.2) | - | (0.2) |
At 31 December 2023 | 109.7 | 100.1 | 209.8 |
Production 2024 | (10.1) | - | (10.1) |
Discoveries | 20.8 | - | 20.8 |
Revision of previous estimate | 8.7 | - | 8.7 |
At 31 December 2024 | 129.1 | 100.1 | 229.2 |
Note 28\tSubsequent events
In January 2025, the Namibian Ministry of Mines and Energy and Namcor Exploration and Production Pty Ltd approved the transfer of 20 percent working interest in PEL 73 in Namibia from ReconAfrica to BW Energy. Refer to Note 12for additional information.
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