Aker BP Positioned for Further Growth

Aker BP Positioned for Further Growth
Independent exploration and production company Aker BP ASA is positioned for further growth, according to the firm's CEO, Karl Johnny Hersvik.

Independent exploration and production company Aker BP ASA is positioned for further growth, according to the firm’s CEO, Karl Johnny Hersvik.

Aker BP plans capital expenditure investments of between $900 and $950 million this year, a company spokesperson said in an Aker BP statement. Exploration expenses are expected to be between $280 and $300 million, with decommissioning expenditures estimated at between $100 and $110 million.

In 2016, Aker BP’s production was 118,200 barrels of oil equivalents per day. Production in 2017 is expected to increase to between 128,000 and 135,000 boepd, with an average production cost of $11 per barrel of oil equivalent. With the current portfolio, the company has the potential to produce 270,000 boepd in 2023, according to a company statement, representing a compound average growth rate of 12 percent.

The company’s recorded P50 reserves grew to 711 million boe at the end of 2016 and contingent resources were estimated at 600 million boe at year-end 2016, an increase of 84 percent from the previous year.

Despite its overall uptick, Aker BP is currently not planning any adjustment to staffing levels in 2017, a company spokesperson told Rigzone.

“I am very pleased with what the company has delivered during a period of low oil prices and challenging market conditions; efficient operations with high operational uptime, the operated Ivar Aasen and Viper-Kobra developments delivered on time and budget, without serious incidents, and we discovered 24 percent of the total volumes on the Norwegian Continental Shelf in 2016,” Hersvik said.

Aker BP’s ambition is to discover a net 250 million boe in the 2016 – 2020 period. The company plans to continue its exploration strategy in 2017 with four operated exploration wells and three partner-operated exploration wells on the program.

Aker also plans to mature several projects, and to submit three PDOs (Plans for Development and Operation) to the Ministry of Petroleum and Energy (MPE) in 2017. These relate to Snadd, with expected production start in 2020, Valhall West Flank, with expected production start-up in 2021 and Storklakken, which is expected to start producing in 2020.

”The company is well-positioned for achieving our ambition of becoming the leading offshore, independent exploration and production company,” Hersvik said.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

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