Agreement signed for acquposition of semi–submersible drilling rig for the Kudu development

BW Energy is advancing a revised development plan for the Kudu gas field off Namibia. The new development plan for the Gas to Power project will use a converted semi-submersible drilling rig as a floating production unit.

The Company has signed an agreement to acquire the “Leo” semi-submersible drilling platform from Aquadrill LLC for a total amount of $ 14 million. The reallocation will allow optimization of the project schedule and significantly reduce capital investments compared to previous development concepts.

“The revised development concept offers tangible financial, timeframe and environmental benefits. The reuse of existing facilities also allows a substantial reduction in greenhouse gas emissions associated with the development of the field compared to new construction, ”said Carl Krogh Arnet, CEO of BW Energy. “We have therefore decided to take advantage of the availability of this high quality semi at an attractive price. Replacing imported electricity with domestic electricity produced with natural gas will reduce Namibia’s carbon footprint and ensure the stability of electricity for the future.

The revised integrated development plan aims to provide competitive electricity to a growing African market with significant upside potential. A development of the Kudu field is an attractive opportunity for BW Energy to enter the electricity market and potentially to fully or partially assume a position as an independent electricity producer (IPP) through a strategic partnership.

“We see the electrification of African economies as an important long-term growth opportunity for BW Energy and a potential avenue for us to develop a new strategic position closer to energy end customers,” said Carl Krogh Arnet .

The timing of the final sanction of the project is subject to the completion of a project finance solution for the Kudu gas-to-power project.

For more information, please contact:

Knut R. Sæthre, CFO, +47 911 17 876

[email protected] or www.bwenergy.no

About BW Energy:

BW Energy is a growing E&P company with a differentiated strategy targeting proven offshore oil and gas reservoirs through incremental low risk developments. The Company has access to existing production facilities to reduce time to first oil and cash flow with lower investments than traditional offshore developments. The main assets are 73.5% of the Dussafu marine license in production off Gabon and a 95% stake in the Maromba field in Brazil, both operated by the Company. Total net 2P + 2C reserves were 243 million barrels at the start of 2021.

This information is subject to disclosure requirements in accordance with Section 5-12 of the Norwegian Securities Law.