BW Energy Bets $300 Million on Gabon Offshore Oil Growth

BW Energy has approved a final investment decision (FID) for the Bourdon offshore oil field in Gabon, committing $300 million to a project that could help boost production in a country grappling with declining oil output. The Norwegian energy company announced on May 20 that it had sanctioned development of the Bourdon field, located within the offshore Dussafu Marin licence. The investment is expected to deliver first oil in the first quarter of 2028. BW Energy plans to invest approximately $100 million before production begins, with the remainder allocated throughout the project’s development phase.

Existing Platform to Be Repurposed for New Production

The development strategy centres on converting the existing Akoum drilling platform, formerly known as Jasmine Alpha, into a dedicated wellhead platform capable of supporting up to 12 production wells with Initial production to be driven by three wells targeting reserves estimated at approximately 25 million barrels of oil equivalent, consisting almost entirely of crude oil. The expanded infrastructure is designed to accommodate future development phases, allowing the company to increase production as additional resources are brought online.

BW Energy has also identified nearby resources estimated at around 200 million barrels of oil in place, highlighting the longer-term potential of the Dussafu area. To support financing, the company signed a framework agreement with Chinese firm Minsheng Financial Leasing. The arrangement outlines terms for a future sale-and-leaseback agreement that is expected to cover the platform’s operating costs before first oil production.

BW Energy holds a 73.5% interest in the project, alongside partner Panoro Energy with 17.5% and Gabon Oil Company with 9%.

The company believes the Bourdon development offers strong economics despite uncertainty in global energy markets. According to BW Energy, the project remains commercially viable even if crude oil prices fall to $45 per barrel. At an oil price of $60 per barrel, the company expects annual returns of more than 25%, reinforcing confidence in the investment despite a challenging operating environment for the global oil industry.

Boost for Gabon’s Oil Industry

The investment comes at a critical time for Gabon’s petroleum sector, which has experienced a steady decline in production over recent decades. Government data released in April showed national oil production fell nearly 3% in 2025 to approximately 82 million barrels. Average daily output reached about 216,000 barrels in February, a significant decline from the more than 350,000 barrels per day produced during the mid-1990s.

In response, the Gabonese government has introduced measures aimed at attracting investment and extending the life of existing oil assets. Earlier this year, authorities granted BW Energy a 25-year extension of the Dussafu Marin production-sharing contract, extending its validity until 2053. The extension is expected to provide long-term certainty for operators while supporting future field developments within the licence area.

The BW-operated Dussafu block currently produces around 40,000 barrels per day and is expected to remain an important contributor to Gabon’s oil sector. Government estimates suggest the contract extension could generate approximately CFA142 billion (around $240 million) in annual revenue for the state.