Aker BP Profits, Exploration Up

Norwegian independent Aker BP has reported 2Q net income of $136mn, up from $60mn in 2Q 2017, helped by oil at $76/barrel, up from $51/b in 2Q2017; and gas at $7.77 /mn Btu, up from $5/mn Btu.

Net production increased to 157,800 barrels of oil equivalent (boe)/day, from 142,700 boe/d in 2Q 2017, mostly thanks to its acquisition of Hess Norge in late 2017.

Net output from its 23.8% share of the Skarv field, Aker BP’s main gas asset, declined to 27,600 boe/d, from 29,300 boe/d in 2Q2017 after it replaced the christmas tree and restarted the second well.

Aker BP said it remains on target to reach its full-year estimate of 155-160,000 boe/d. For the first six months, production cost averaged $11.8/boe, in line with its $12 estimate for full year 2018.

The company said it is revitalising its Ula oil hub, and would start gas lift in 4Q2018 at the Tambar oil field, and oil production at the Oda field in 2019, both nearby. Oda associated gas would also support Ula development. Meanwhile, exploration spending for 2018 is now estimated at $425mn (up from its previous $325mn estimate) is largely due to greater activity following the Frosk oil discovery – now targeted for test production in 2019. The company listed nine wells to be drilled in 2H2018, of which six operated by Aker BP.

The company’s operated field developments of Aerfugl (gas), Valhall Flank West and Skogul as well as the Johan Sverdrup development are all progressing according to plan, said Aker BP, with its estimated capex for 2018 remaining unchanged at about $1.3bn.