Aker BP to Remain Pure-Play Oil, Gas Producer

Aker BP will remain a pure-play oil and gas producer, the company said on February 4, despite parent BP planning to shift its focus away from hydrocarbons and towards renewables over the coming years.

The Norwegian firm, which is 36.9% owned by BP and 49.3% by Norwegian investment firm Aker, will still contribute to the energy transition "through maximising value creation, minimising emissions, and by sharing of data and competence to other industries," it said. Aker BP's emissions were 4.5 kg/barrel of oil equivalent last year, which it said was under one third of the global industry average. The company is working on further reductions.

Aker BP is targeting a growth in production of 70% by 2028 to over 350,000 barrels of oil equivalent/day, from 223,100 boe/d in 2020. It projects 210-220,000 boe/d of supply in 2021. The company has set its capital spending budget at $2.2-2.3bn for this year, up from $1.7bn, as it looks to capitalise on tax breaks awarded by the government to encourage offshore operators to advance new projects.

Aker BP's results last year were buoyed by the growth of low-cost production at the Equinor-operated Johan Sverdrup oilfield, in which it has a 11.6% interest. The company's earnings before interest and tax dropped to $278mn in the fourth quarter, from $491mn a year earlier.

Aker BP originally planned to pay out $850mn in dividends in 2020 but cut this to $425mn in May in response to the oil price crash. It expects payments to shareholders to come to $450mn in 2021, and has pledged to raise the annual dividend by 5% each year from 2022, as long as oil prices hold at above $40/b.

"The operational performance has never been stronger, the financial position has never been more robust, and our investment opportunities have never been more attractive to pursue," CEO Karl Johnny Hersvik said.