BW Energy Ltd

OSE:BWE

Earnings Call Transcript 2024-Q1

[Operator]

Hello, everyone and welcome to BW Energy's Q1 Presentation for 2024. [Operator Instructions] This call is being recorded. I'll now turn the call over to speakers. Please begin.

[Carl Arnet, executive]

Thank you, operator. A warm welcome to First Quarter 2024 presentation by BW Energy. This presentation will, as usual, be hosted by our CFO, Knut Sæthre; our COO, Lin Espey; and myself, Carl Arnet. It's a pleasure to welcome you to another eventful quarter for the company. But hopefully, you will see that it's eventful in a very good way. So I will dive straight into it. And please note our disclaimer. And then we have the first quarter highlights.

Our net production from Gabon and Brazil was 27,300 barrels per day average. And we achieved first oil from Hibiscus South in early March and we're very proud, rightly that this was 5 months after initial discovery. The second Hibiscus South well, confirms the northern extension of the Hibiscus South accumulation and again, with good reservoir quality. I will come back to that in more detail later.

We had also made a substantial oil discovery on the northern flank of the Hibiscus main field and that will also be covered in more detail later. We also executed a sale leaseback of the MaBoMo facility with a 10-year lease term in April, $150 million.

The Q1 EBITDA was $109.7 million, with a net profit to company of $47.4 million. We had 3 liftings in total of 1.9 million barrels. And our cash position was still healthy at $150 million. We do invest significantly as you can understand from our program but that's all to the benefit of our shareholders.

The Golfinho prepayment facility was extended and increased to $120 million. We managed to stabilize production at a higher level, even though we're still pending ESP -- new ESPs and we managed to put new wells into production. But -- so we have managed to recover but we still haven't finally solved the ESP problems.

With respect to our LTI, we recorded no LTIs in 20 -- in the first quarter of 2024. We further had no environmental incidents. And we continue to progress very well on our local community initiatives and we are very active participant in a number of programs to help local communities where we operate.

So a bit more granularity on the Dussafu status. In terms of production, the net production in the first quarter was 1.66 million barrels, equal to 18,260 barrels per day. OpEx was reduced suitably, down from current or previous levels to $23 per barrel and that was -- we did achieve significant operational efficiency gains and of course, also some production growth compared to previous quarters.

We are progressing on the ESP solution. We have 3 conventional ESP systems ordered and we aim to install these shortly as per our work over schedule. We have an additional 4 conventional systems that is expected to be delivered in the Q3 2024. And they will also be installed as per the work over schedule. Presently, the FPSO Adolo is shut down for annual maintenance and tank inspection. We expect this to take a bit more than 3 weeks. A bit early to say yet because of the tank inspection but of course, we are progressing as quickly as we can. And of course, we are continuing unabatedly with our drilling program.

Again, Hibiscus has proved to be a very prolific area. We established first oil from Hibiscus South in March, less than 5 months after discovery and the well is producing 7,800 barrels per day, which is, of course, very useful. The 2P pilot or the Hibiscus South pilot #2 has confirmed that there is a northern extension of this Hibiscus South field. And we aim, of course, to put this in production later in 2024 and it's currently being evaluated in the totality of our very -- on very much ongoing extensive drilling program.

We also made a pilot and discovery in the northern flank of the Hibiscus main field. This is the first instance where we see a common Gamba-Dentale hydrocarbon accumulation. And it's very, very, let's say -- it gives us a good indication that there will be a notable increase to the oil in place and the recoverable reserves of Hibiscus. This again underpins the very good performance of the Hibiscus 6H, which is flowing naturally still and flowing very well. This, I think, shows that our strategy of infrastructure-led exploration or appraisal is working out extremely well and that we are adding to -- we are able to add significant reserves to the already discovered resource.

Back to the Hibiscus/Ruche drilling program. We have -- we are discussing a significant extension of the drilling rig contract with our supplier. We will, of course, aim to complete the 2 production wells, the well into the northern extension of the Southern -- Hibiscus South and the northern extension of the Hibiscus main. We are, of course, also planning to do a number of work orders related to the -- work overs related to the installation of the new conventional ESPs that we have on order and it's being delivered as we speak. And of course, the objective is to increase Dussafu production up to the Adolo nameplate capacity. Another key target for the company is to drill the Bourdon, Prospect B formerly called, as the fourth appraisal in this drilling campaign.

Then on to Golfinho. I would very much say steady as she goes. We have had very stable production at Golfinho. We achieved 0.82 million barrels in the quarter, about 9,000 barrels per day, with an average cost of $48 per barrel. We are progressing very well with the infield development plans towards FID this year. These are 2 wells that will give us -- and very low-risk wells they are, so that will give us additional oil and gas production. This will, of course, be useful in reducing our per barrel cost and we also expect significant positive impacts on the reserves. We are in the process of securing all the long lead items and we are looking at various drill or rig opportunities to entertain this program.

Then on to Maromba. Not a lot of new things to report on Maromba. We are progressing. We are in discussions with COSCO Shipping Heavy Industry related to the conversion program and we are looking at the wellhead platform concept and in discussion with companies to undertake that work. The -- again, to repeat, the expected annual production is 30,000 to 40,000 barrels per day. The project economics is very solid and we are bearing away to have a FID as soon as we can get all the Is dotted and Ts crossed and get everything organized.

Kudu, super exciting, another major discovery outboard of us by Galp, reported 10 billion barrels of oil in place, 60 kilometers distance from us. We completed our 3D seismic processing in May, as we have previously reported. We have, however, in light of the new discovery and we have been able to access further seismic data just outboard of our block. And we have decided, in light of the recent developments, to bring that into our data set and to extend our analysis of our own position. And we see -- of course, this extremely -- we find this extremely interesting and it gives us lot of good data points.

Our -- we have secured long lead items now for a 2025 exploration program and we are in the process of exploring various rig alternatives and we have very productive dialogues with the other operators in the Orange Basin. We're also progressing on our concept development for the Kudu gas-to-power project.

That ends the operational update, I think I will then leave the word to you, Knut, to take us through the financials, as usual.

[Knut Sæthre, executive]

Thank you, Carl and welcome to the financial section of the first quarter 2024 results. First of all, we have been busy on -- adding on new financial resources. We closed a prepayment facility for Golfinho that we had in place already but we managed to extend and increase that from $80 million to $120 million. And that new facility, that's a 12-month facility that was fully drawn at the end of the period.

In addition, we entered into an agreement on a lease -- or sale and leaseback for MaBoMo. The agreement was for gross $150 million, where of $110 million were to BW Energy according to our ownership of the license. So this is to fund further our growth strategy, including the Gabon development projects. So this is a 10-year lease, with an option to repurchase the unit from the end of year 7. We have also been active on other financings for -- mainly for Maromba, where we're working on Chinese ECA financing and also with banks in the Middle East and also with other international RBL banks.

To the income statement, for the first quarter, we had operating revenue of $185 million. We had 3 liftings of 1.9 million barrels in the quarter versus 4 liftings of 2.7 million barrels in the fourth quarter. That's the main reason for the reduction in revenues, number of liftings. We had a loss from oil derivatives of $3.3 million. However, [ $3.8 million ] that was unrealized. So we'll see how that goes for the next quarter with the current oil price. Operating expenses was lower, $72 million, which then gave us an EBITDA of close to $110 million for the first quarter. So another good quarter for BW Energy.

Depreciations and amortizations are in line, giving us an operating profit for the quarter of $73 million. We had the usual interest expense that -- the main difference there was actually more from the fourth quarter, where we had a capitalization of interest. That's why you saw a positive number there in Q4. So for Q1, we had interest expense of $2.9 million. What stands out here is other financial items. That is a contingent payment for the Golfinho cluster. So we paid about $20 million to Petrobras, that was contingent payment for the Golfinho transaction and some of that comes up as other financial items totaling $5.5 million.

So the profit before tax, $61 million. Income tax expense of $13.8 million. As in the previous quarter, we have some deferred tax assets for Golfinho that is a tax income, so that helps on the whole tax situation for the company. So that ends the quarter with a net profit of $47.4 million.

To the balance sheet. As usual, we are always -- as long as we have our investing activities, we're adding assets to the E&P tangible assets, that's mainly from the Hibiscus/Ruche development, a little bit from Maromba as well. We had an increase in inventory, that is mainly because of the oil inventory we have on board, the FPSO Vitoria for Golfinho. Trade and receivable assets. That was a big increase that is due to the Dussafu March lifting and a DMO delivery that was a trade receivable at the end but it was then paid in April. So the trade receivables are more back to normal as we speak.

We ended the quarter with $150 million in cash. And over to the equity and liability side of the balance sheet. Here, you can see the effect of the continuing payment to Petrobras of the $20 million reduced our long-term liabilities. You can also see that we have a very high activity on the investing side, giving us also quite high trade and other payables. So there was an increase there as well due to -- mainly due to drilling. And you can also see the effect of the increased prepayment facility in Brazil to $120 million on interest-bearing current debt, as that is a 12-month facility. So all in all, still a very strong balance sheet, with more than 40% of equity ratio and net interest-bearing debt of about $260 million.

Quickly to the cash flow overview. We had cash at the end of December of $194 million. We had operating cash flow of $99 million and net investments of $80 million, mainly related to Dussafu but also the $20 million payment to Petrobras for Golfinho is included there. The net financing activities of $14 million gave us $150 million of cash at the end of the quarter.

Here, we have some guidance due to our lifting schedule and also a few words on hedging. So to the graph on the right-hand side, you can see the quarterly lifting schedule to BW Energy, divided between Gabon and Brazil for Dussafu and Golfinho. On Dussafu, we had 2 Q1 liftings, both in March, totaling 1.4 million barrels, with an average realized price of $83 per barrel. We also quite recently had a lifting in the second quarter of 730,000 barrels net to BW Energy. In Golfinho, we had 1 lifting in Q1 of 490,000 barrels in February at $82 per barrel. We have 2 liftings in Q2, 500,000 barrels lifted in April at a price of $90. And then we have another lifting that is planned for June of 500,000 barrels.

And a few words to hedging. As we've mentioned before, we have requirements to hedge in the RBL facility for Dussafu, where we have to hedge 40% for the year 1 production and 25% for the year 2 production. So currently, we have 4.2 million barrels hedged for 2024 and 2025. This is a mix of puts, zero cost collars and swaps. We have also entered into some slots for the Golfinho barrels. About 20% of the annual production has been hedged using swaps for Golfinho.

Then over to the summary. On the production guidance, we have maintained that for the quarter. It's still early days and we're still heading for 10 million to 12 million barrels net to BW Energy. On the production costs, same, no change in the guidance, $30-$35 per barrel. There we are trending towards the lower end of that guidance. On the net CapEx, we have increased our guidance somewhat from $250 million to $300 million. The new number is $280 million to $330 million. So we have an increase here related to Dussafu, reflecting the good results that we've had on the exploration side, which then leads to additional completions and work that we have to do to complete these wells. And on the G&A, there is no change to our guidance.

So to our final slide, as a summary. On the production side, the target is then to complete all ESP change outs and maximize the Dussafu output. And then we will -- we have, of course, had the success from Hibiscus South just after 5 months of finding it. And now we will complete the second Hibiscus South well later in 2024. On the exploration side, later in the drilling program in Gabon to drill the Bourdon appraisal well and also to complete the 3D seismic evaluation to assess the Kudu potential and prepare for the exploration program.

On the development side, it's to complete Hibiscus/Ruche drilling campaign, sanction the Golfinho infill wells later this year and finalize Maromba development plan and the financing and also continue to progress the Kudu gas-to-power project. On the corporate side, we will continue to fund investments through strong operational cash flow, supported by our debt facilities and lease financing. And the intention is then to pay dividend of up to 50% of net profit when we have Maromba in full operation.

So that brings us to the end of the quarterly presentation and then I'll leave the back -- word back to you, operator, for questions from the audience. And then we will continue here with the questions we have received from the web.

[Operator]

[Operator Instructions] The first question will be from the line of Teodor Sveen-Nilsen from SB1 Markets.

[Teodor Nilsen, analyst]

Congrats on a strong quarter. Three questions for me. First on following the 2 Hibiscus discoveries that you recently announced, do you think there is some upside potential to the production profile you previously have shown? I noticed that you didn't show that in today's presentations but you have previously shown a production profile. So just assume there's some upside to that. Please confirm.

Second question. You didn't announce any volumes on the northern flank, the Hibiscus northern flank discovery. Are you now in a position to discuss or put us in a position to guess something around all those wells?

And my third and final question, that is, could you just provide an updated CapEx guidance for the Maromba development and perhaps whether that full CapEx number performs from now until first oil.

[Carl Arnet, executive]

I think maybe, Lin, can you take the first 2 questions?

[Lin Espey, executive]

Sure. Thank you, Carl and hopefully, my connection is satisfactory. But in terms of the first question, yes, the addition -- discovery of additional reserves will lead to increased production profile. So those additional reserves will have to be produced, which is a good thing and that will ultimately manifest itself into the production profile . We do have a [ favorable ] cap on the production facility. Potentially, we could increase that or otherwise, we would be able to extend the production platform -- plateau.

And then the second question on, we haven't -- you're correct. We haven't announced increased volumes on the most recent announcement that we're very excited about that. [Technical Difficulty]

[Knut Sæthre, executive]

I think we lost Lin here.

[Carl Arnet, executive]

See if he comes back.

[Knut Sæthre, executive]

But to your third question, Teodor, we got the same question in the first quarter and there is no change. And the answer in the first quarter was, still early days but roughly about $1 billion up to first oil.

Are you back, Lin, to say something about volumes?

[Lin Espey, executive]

Can you hear me a little better right now?

[Knut Sæthre, executive]

Yes.

[Carl Arnet, executive]

Yes.

[Lin Espey, executive]

Okay. But no, it's too early to provide any guidance on updated volumes from this most recent successful appraisal of the northern part of the business main field. We need to give our self -- service team a little bit more time to fully integrate all the data.

[Carl Arnet, executive]

And I think we can also say that this is the first time we have encountered a continuous phase of oil through Gamba and Dentale. So the implications of this is going to be very interesting. But that's where the geos need to get their thinking caps on and do some further thinking.

And I think also, Lin, it's correct to say that we have seen exceptional performance from 6H and this explains some of that performance, which has been better -- far better than we had reason to believe, initially.

[Operator]

The next question will be from the line of Tom Erik Kristiansen from Pareto Securities.

[Tom Kristiansen, analyst]

Congrats on a good quarter. On Kudu first, is drilling next year potentially kind of in the plans or you're going to take a bit longer to process other options on how to deal with that much more exciting upside now than what you used to think about it? And then on the [indiscernible], how long do you think [indiscernible] can be maintained now in your current plans with the success you have had?

And then secondly, with [indiscernible] success just discussed on the call, do you think that has a widespread impact on reserves across the block? Or is it more separate to discovery you made now?

[Carl Arnet, executive]

I got your first question, I hope, which went -- was to the drilling. We have intensified our activities. We have -- first of all, we have managed to secure the necessary, let's say, long lead items to do drilling in '25. Due to the increased drilling activity, we also see a much improved availability of drilling rigs. And we have very fruitful dialogue with the other operators in the Orange Basin and we, it looks like we may be able to get access to drilling capacity earlier -- much earlier than we had previously, let's say, anticipated. And yes, we are absolutely going to try to benefit from that, so we will go as early as we can, I think, in 2025.

The second part, I didn't quite catch. There was some noise on my line. So could you please repeat that question?

[Knut Sæthre, executive]

Yes, there was one thing that I got that was reserves on -- across the block with the recent success on Hibiscus, whether we expect to find more in the area that could add on to reserves.

Maybe, Lin, if you can take that one?

[Lin Espey, executive]

Sure. We do expect our reserves overall to increase by -- as a result of the recent announcements the final number is to be determined. But there are additional upside potential in that area. So we've always been very excited about this block and we continue to remain excited about the upside of potential of Dussafu block.

[Knut Sæthre, executive]

And then the first part of Dussafu, I think we all missed that one, Tom Erik. Can you please repeat?

[Tom Kristiansen, analyst]

Okay. Apologies for that. Yes, I'm just thinking, it looks like [indiscernible] oil production can be maintained for a while longer than people expect now. Do you have any internal ambitions for how long you think you can stay at plateau with what you have now? And will you step up drilling activity to backfill with more exploration, hopefully successfully given the -- even if you're back on track to get back-to-back discoveries. How do you plan now? How have you kind of accelerated the activity level you plan to do on the block? And how long do you think you can maintain plateau?

[Lin Espey, executive]

Well, we've -- we haven't issued guidance yet on the extension of the plateau. Let the team finish the subsurface work to verify that. But we have increased our drilling activity in Dussafu. We've been -- from the original program, was going to be 6 development wells. We're increasing that to a total of 8 development wells. And we've also added a few of these appraisal pipeline wells to continue the appraisal of the Hibiscus field.

So any further work we're going to do -- we're going to incorporate all the learnings that we've had recently. And then if -- how we choose to increase activity program going forward, we'll have to come back and share that with you.

[Knut Sæthre, executive]

I think it's fair to say that with a larger inventory and a more diversified set of wells, we could stay longer at plateau. If you can say something about that, Lin.

[Lin Espey, executive]

Yes, for sure, that's how it'll have to manifest itself. So increased reserves will -- will either increase the production plateau level or if we're able to bottleneck the FPSO potentially to increase the plateau. So how exactly it will manifest itself, we've got to work through that.

[Tom Kristiansen, analyst]

Just a follow-up on that. I remember a couple of years ago, we talked about increasing or debottlenecking, as you mentioned, how much do you think the potential is there? Can it be 50,000 [ barrels ] capacity or even more?

And second question, a bit from the slide here is, with all the organic growth initiatives you have in the portfolio now, is M&A a bit more off the table or are you still kind of actively exploring that as well?

[Carl Arnet, executive]

Well, I can answer that. I think the nameplates and normal design tolerances of a topside facility should -- would be typically in the range to 10% to 15%. So we would, if and when we have the oil available, we would expect to be able to, without any significant investments to increase above the nameplate accordingly. We may, of course, hit new problems, which is -- could be foaming or emulsions and other things but that can normally be solved by chemicals. So we're quite hopeful that we will be able to exceed the nameplate without, as I say, significant investments. That's normal design tolerances.

The second part, what -- remind me what was that again?

[Knut Sæthre, executive]

The M&A activity. I mean we have a lot on our table are we still having appetite for M&A?

[Carl Arnet, executive]

We are looking at lots of things that comes our way. People want to talk to us. We're extremely appreciative of that. And we will always look but you are right in the sense that we feel we have a very, very attractive portfolio of assets. But of course, if we were to find something that we would find even more attractive than what we have in our portfolio today, sensible, let's say, financial development is then to go for the most attractive you have, first, which is -- that's the normal -- that's a normal thing we will do. So yes, we're constantly looking at M&A opportunities.

[Operator]

[Operator Instructions] The next question will be from the line of Nick Linnane from Sefton.

[Nick Linnane, analyst]

I had a couple of questions, if that's okay. The first one is just to, I guess, understand or clarify the situation with conventional ESPs. Like, how many do you have currently in the next few weeks that you are ready that they could be installed? And do you expect to have 8 within the next few months, such that you could replace or install or replace ESPs on all of the existing wells? Or what's your expectation in terms of the number of conventional ones you can get?

[Lin Espey, executive]

I can take that one. The -- right now, the first batch of conventional ESPs have arrived or arriving, all the bits and pieces and such, a total of 3. So that will get us started the second batch, additional 4 are due to come within the next couple of months. So that, if the timing holds and there is -- in this supply chain market right now, things are a bit tight but if things work according to plan, we should have total of 7 here, all within in a few months. And then we have an additional third batch coming in behind that as well. So it's a bit tight but we're making good progress to replace all the wells with conventional ESPs. And just as a reminder, a couple of wells have the ability to flow naturally. So we have a little bit of flexibility on how we execute all these ESP replacements.

[Nick Linnane, analyst]

So the 2 recent discoveries that I guess you're now going back to complete as development wells, would you put ESPs immediately on those? Or you can just see if they free flow and maybe later, until later?

[Lin Espey, executive]

That's an option that we have. I think our base case is, we would go ahead and put the ESPs in them because eventually, if they flow naturally, then we'd need the foam. Our base case would be to install the ESPs in them but that is a little bit of a flexibility that we have. We could choose not to do it and then flow the wells naturally in this area, if need be.

[Nick Linnane, analyst]

Okay. And Lin, I guess, regarding -- just to clarify regarding the Dentale, am I right that there were no Dentale wells originally planned at Hibiscus? And why was that? Did you think it didn't exist there? Or you thought of maybe it did exist but was too tight? Or what was the original understanding that has now changed?

[Lin Espey, executive]

Good question. If you recall, over at Tortue, we do have the Dentale oil discovery. That's the field Tortue, 20 kilometers away. But the original discovery wells in the Hibiscus area, that didn't -- the oil zone was present in Gabon, we didn't have the -- we didn't have sand [indiscernible] formations there but it was water. And the subsequent appraisal wells, we never found any hydrocarbon in that formation. So it's encouraging and exciting that we found some hydrocarbon in -- now into the Dentale. Now to the extent of it and what that all means, to be determined but it opens up a new avenue for us to evaluate.

[Nick Linnane, analyst]

Okay. And Hibiscus North, if I remember the last update on that was that there was maybe a few million barrels there, maybe commercial or maybe not, does this potentially change your understanding of that?

[Lin Espey, executive]

No. Well, that's Hibiscus North, that's a separate accumulation, a little further north than what we've just drilled. Now I know it may get a little confusing. There's a lot of Hibiscus South, Hibiscus North and the northern flank of Hibiscus South and now the northern flank of Hibiscus main but that Hibiscus North is a different accumulation and our understanding of that resource is still in that quality that you just mentioned.

[Nick Linnane, analyst]

Okay. And on Namibia, can you talk a little bit to specific prospects that you think you see and whether those specific prospects are gas or oil or gas condensate there?

[Lin Espey, executive]

Well, we haven't announced publicly too much specifics on the targets that are out there. But we have shared that we have 2 different play types that we're looking at. There's the historical gas play, the original Kudu discovery, which is Barremian age formation. We feel like there's greater -- significant greater upside on that and that's gas. As well as we have plays that we are -- also think we have looking at and that is the Santonian and Campanian, which is more analogous to what the folks and the blocks adjacent to us and outboard have made recent discoveries on. So we believe we have both type -- play types and in our block that we're looking at.

[Nick Linnane, analyst]

I'm sorry, [indiscernible] Santonian and Campanian, or that's something different again?

[Lin Espey, executive]

Yes, that's exactly. That's in that age bracket. Campanian discovery on the Galp block is in that Santonian and Campanian age.

[Operator]

As no one else has lined up for questions in this call, I'll hand it back to the speakers for any written questions from the webcast.

[Knut Sæthre, executive]

Thank you, operator. We have a couple of questions here from Ola Eikanger in SEB. Before the maintenance shut in, what was the production rate at Dussafu?

I think we had a pretty stable production of around 30,000 barrels on Dussafu before the FPSO was shut in now in mid-May.

And then the second question, when you say Golfinho is to double production from 2027, is that a doubling of today's production rate?

I would say, yes, 10,000 barrels and target 20,000 barrels. I don't know if you want to say something more about that, Carl or Lin?

[Carl Arnet, executive]

No, that's -- that is our expectation. So I think we -- it's good enough. Yes.

[Lin Espey, executive]

And that's oil and gas equivalent. Yes.

[Knut Sæthre, executive]

Yes, there's 1 oil well and 1 gas well. And the gas would most likely also reduce our OpEx somewhat, which was another question on development of OpEx going forward.

So obviously, when you measure that in OpEx per barrel, that will go down. So first of all, it's getting the Dussafu production up to nameplate, that will drop OpEx per barrel downwards. So currently, we're running at $22, $23 per barrel. Later this year, we will be around $19, $20 and with a more stable higher production, we will be at $15-ish. And obviously, also then for Golfinho but that takes some time. So as we go along production might drop a little bit. So we might see increased OpEx per barrel until we have those 2 new wells going. And if we double production, OpEx should be pretty stable or it should actually go a little bit down with the additional gas well. So they've been currently running at a little bit below $50, it's $20 to $25, I guess, that we see on the Golfinho OpEx per barrel.

And then we have a question from [ Evan Svensen ]. There are some concerns about ownership, where the largest owner approach 75% ownership. This causes concern in relation to possible delisting of the company from the OSE and forced redemption of minority owners. Would you like to comment on this? And is there a plan for a possible listing of the company on the U.S. stock exchange?

Will you take that, Carl?

[Carl Arnet, executive]

Yes. Yes. We do have an owner with close to 25% ownership stake after Group acquired BW Offshore's stake. I think the good thing about that is that it has removed sales overhang as people -- as investors were expecting BW Offshore to sell out. That is the positive. Yes, of course, we have then a very large owner. That large owner has so far stated that they are interested in building the company and invest in the company and they have the intention to keep it listed.

So I think we should believe them on their word and I don't see that they normally change their position on their listed companies. Yes, there's evidence in the history that they have taken companies private again but that has normally been associated with some sort of refinancing -- total refinancing of the company, which is clearly not the position we are in. So I expect us to remain a listed company.

As to the place of listing, we will constantly, of course, monitor if we see benefits to different listings. We have reviewed that in the past as well. So far, the conclusion has been that the marketplace in Oslo is a suitable marketplace for a company like BW Energy and our scale. But this will be under continuous review. And if we see benefits to shareholders, we will act to do differently. So that is just something we will continue to monitor and think about.

[Knut Sæthre, executive]

Okay. And then there are lots of questions around the FPSO capacity, the bottleneck and how to potentially increase and also about the volumes in Hibiscus. I think we have been through all those. So we have to be a little bit more patient on the volumes. So let's move on.

Then there is a question from [ Antonio Logano ] about Kudu and seismic data, data room, FID and Kudu's infrastructure related to other blocks in the area. Maybe you could start with that, Carl?

[Carl Arnet, executive]

Yes, I'm not quite sure what is meant by other -- there is no infrastructure, basically in the Orange Basin today. There, I have heard -- but here, I'm just referring to the press that Galp is looking at potentially doing some early production systems to test their discovery. We are working on our gas-to-power project but I think we will come back and cover that in more detail when we go through the results of our seismic -- analysis of the 3D seismic that we have [indiscernible].

As I said in my presentation, we have completed that in May as we told the market we would do but we have decided to add more information with the additional acreage of seismic we have purchased that has become available. And we also, of course, want to add the information we can glean from other discoveries.

So I guess we will be completing the work we are now doing in a couple of months' time. That's our ambition. And then of course, it is what we find and then how quickly we move if we find something to establish any infrastructure. We certainly have the capability to establish infrastructure in Orange Basin very quickly. As I'm sure you know, we have already purchased a very, very useful vehicle in that regard with the semisubmersible rig we have laid up precisely for that purpose.

[Knut Sæthre, executive]

Good. Then there is a question from [ Michael Sandstrom ]. Do you have plans to do more exploration/appraisal drilling around the northern flank further down the line after the current drilling campaign is over?

[Lin Espey, executive]

Good question. I hope the answer is yes. Let us come back to you with -- once we understand the geologic appraisal of it and see what options we have going forward. So I think it's a little premature at this time but the hope is that, yes.

[Knut Sæthre, executive]

Good. And then there is a question from [ Evan Svensen ]. again. Given the positive -- given a positive discovery for Bourdon, is it relevant to utilize the other jackup rig?

Surely, there are synergy effects here that you can already use the same scope and redevelopment as for the MaBoMo.

[Carl Arnet, executive]

Yes, that is absolutely the case. And of course, we do have -- these are sister jackups. So we know exactly what to do to convert the sister of MaBoMo into another production facility. Again, this is our strategy to be very -- to act very quickly from discovery and go to production.

I think our last -- that we -- we did it in 18 months when we started at Dussafu first time. We managed to put -- although we did have, let's say, a small delay due to COVID but we did manage to put Hibiscus in production, I would say, very quickly. And of course, we would be able to do that on any discovery we make on Bourdon as well. So yes, short term between discovery and production, that is company strategy.

[Knut Sæthre, executive]

Good. Then we have covered the questions from the webcast, so I'll leave it to you to close.

[Carl Arnet, executive]

Well, I will -- again, thank you all for participating and listening into our webcast. It's been a lot of very interesting questions as well. More questions, I think, that we've had in some time. So that's very positive. So thank you for your interest and thank you for your participation.