BW Energy has agreed a sale-and-leaseback deal with Minsheng Financial Leasing for the jack-up drilling rig Jasmine Alpha, securing fresh funds while keeping access to the unit.
The transaction will provide BW Energy with $80 million in cash and support the company’s financial flexibility, according to the statement. At the same time, the arrangement allows the company to continue using the rig under a 12-month lease, with an option to extend for another 12 months.
BW Energy said it expects to record an equity gain above the rig’s carrying value. The company linked that gain to the increase in the asset’s value since it was acquired in 2020 at a favourable price during the Covid-19 period.
Chief Financial Officer Thomas Young said the company is capturing significant value from an asset bought at a deep discount, while preserving operational access and strategic flexibility. He added that the rig could also be repurposed in the future as a production platform for use in the company’s development portfolio.
Young said the deal will strengthen BW Energy’s balance sheet and underlines the company’s ability to arrange flexible and competitive infrastructure financing as it pursues a plan to triple production in 2028.
The agreement also extends BW Energy’s existing relationship with Minsheng Financial Leasing, which is already involved in the financing of the Maromba B wellhead platform.
