EBITDA for the fourth quarter of 2018 was USD 148.9 million, an increase from USD 126.4 million in the third quarter on improved performance at BW Catcher and the first oil-lifting from Tortue in December, which yielded net 504 thousand bbls to BW Energy, BW Offshore announced. Production costs at Tortue was affected by certain non-recurring expenses related to payments to the Government and purchases of consumables.
BW Catcher operated consistently above nameplate capacity and an agreement for excess production above nameplate capacity was agreed with the client effective from 1 November 2018. The Company has signed agreements to extend the leases for the FPSOs Abo and Polvo. FSO Belokamenka has been sold for recycling in accordance with the Hong Kong convention with net gain to BW Offshore of USD 7 million.
Gross production from Tortue averaged 11.8 thousand bbls per day in the fourth quarter. The total net production to the BW Energy partnership was 997 thousand bbls. The first offloading of 550 thousand bbls of oil was completed in December, yielding net 504 thousand bbls to the BW Energy partnership at a realised price of USD 56 per barrel of oil. Revenues in the quarter was based on lifted volumes in accordance with IFRS 15.
“We achieved several milestones over the past year in line with the strategic priorities we had at the onset of 2018. Production from BW Catcher was consistently above the nameplate capacity in the last quarter, and several lease extensions were signed for the rest of the FPSO fleet. We successfully implemented our E&P model by bringing the Tortue field to first oil within budget and ahead of schedule in less than 18 months and with the first oil lifting executed in the fourth quarter. Looking ahead, the start of Phase 2 of the Tortue development will be a priority together with relentless focus on safe and effective operations across all our assets and activities,” said Carl K. Arnet, the CEO of BW Offshore.