Aker BP Profits Up, Skarv Output High

Aker BP, which operates solely in Norway, said in quarterly results July 14 that gas production from its Skarv area "remained high and stable."

Net profit increased to $60mn in 2Q 2017, up from $6mn a year ago, while production more than doubled to 142,700 barrels of oil equivalent (from 62,400 boe/d in 2Q2016). That included 32,000 boe/d gas (up from 7,200 boe/d a year ago). The average oil price was only slightly higher at $51/b ($49/b in 2Q2016), while production cost rose to $9.3/b (from $6.9/b).

The company now expects to produce 135-140,000 boe/d this year, up from its 2017 guidance at the start of the year of 128-135,000 boe/d.

Aker BP operates Skarv area with 23.835% equity; it yielded 29,326 boe/d net to the company in 2Q 2017. But the company noted “one High Potential Incident involving a dropped object .. recorded on the Skarv FPSO” [production ship], adding that it had learned safely lessons. The field started producing on December 31, 2012.

Snadd, a satellite field, remains on schedule to be tied into the Skarv A template, with first gas in 2020 initially from three wells only.

Aker BP added that phase 1 of the major Johan Sverdrup oil and gas field development is progressing to plan towards production start-up in 4Q 2019.

Mark Smedley