Aker BP Expects Strong Growth

Aker BP, the Norwegian independent formed in September from BP Norge and Det norske oljeselskap, said January 16 it plans to grow its production of118,200 barrels of oil equivalent/day (boe/d) -- about 80% oil and 20% gas – to between 128,000 and 135,000 boe/d in 2017, with an average production cost of $11/boe.

Ahead of an afternoon Capital Markets Day presentation, the firm said it plans to submit three plans for development and operation (PDOs) to the Norwegian government in 2017. These include a plan to tie in the Snadd gas field, through a subsea-tie to Skarv gas field which Aker BP already operates, with production to start in 2020. The other two PDOs relate to oil: Valhall West Flank (due to start up 2021) and Storklakken (start up 2020).

The firm said it has the potential to produce 270,000 boe/d in 2023 from both sanctioned and non-sanctioned projects, or an annual growth of 12%.

Aker BP said recorded P50 reserves have reached 711mn boe at end-2016 and its balance sheet was “robust” with $2.5bn of available liquidity, as against net interest-bearing debt of $2.5bn and planned capital investments of $900-950mn.  

Aker BP CEO Karl Johnny Hersvik (Photo credit: Statoil)

“The operated Ivar Aasen and Viper-Kobra [oil] developments delivered on time and budget, without serious incidents,” said CEO Karl Johnny Hersvik.

Aker BP recently acquired eight license interests from UK-based Tullow, including a 15% interest in the Centrica-operated Oda oil field.

Mark Smedley