Slide 1: Second quarter 2019
Second quarter 2019 Aker BP ASA 12 July 2019
Slide 2: Disclaimer
Disclaimer This Document includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Document are based on current expectations, estimates and projections about globa
Slide 3: Second quarter 2019 key figures
AKER BP Second quarter 2019 Key figures Q2-19 Q1-19 Q2-18* Production in line with plan Execute High maintenance activity Production mboepd 127.3 158.7 157.8 P&A completed ahead of plan Sales mboepd 140.7 162.0 151.3 Realized liquids price USD/bbl 69.3 63.9 73.9 Realized gas price USD/scm 0.16
Slide 4: High activity across the value chain
AKER BP High activity across the value chain Drilling Exploration Development projects Production Decommissioning 6 17 4 127 300 2 simultaneous exploration development projects boe per day projects safely drilling operations wells in 2019 in installation mode production in Q2 executed in 2019 4
Slide 5: Exploration update
Exploration update 5
Slide 6: Creating value from Exploration
EXPLORATION UPDATE Creating value from Exploration High success rate and efficient execution Successful exploration in core areas • 9 wells drilled so far in 2019 • 3 discoveries Industry leading drilling performance • Safe and highly efficient drilling Adding two wells to the program • Nipa –
Slide 7: Liatårnet – material discovery in the NOAKA area
EXPLORATION UPDATE Liatårnet – material discovery in the NOAKA area Building momentum for an area development Area overview A significant oil discovery • Volume in place estimated to 500-700 mmboe • More data needed to determine drainage strategy and recovery Krafla • Recoverable volume prelim. es
Slide 8: Unlocking injectite plays in the Alvheim area
EXPLORATION UPDATE Unlocking injectite plays in the Alvheim area Significant resource additions delivered through exploration Q3-18 Q1-19 Gekko appraisal Froskelår Main 30-60 mmboe 60-130 mmboe Q2-19 Froskelår NE 2-10 mmboe Q3-19 Rumpetroll pre-drill estimate Q1-18 45-148 mmboe Frosk 30-60 mmboe 8
Slide 9: World's first dual drilling operations
EXPLORATION UPDATE World’s first dual drilling operations Drilling faster and faster Dual drilling completed safely and efficiently on three wells • JK • Hornet • Freke-Garm Deepsea Stavanger – rig with world class capabilities • Two top drives • Two circulating systems • Two drill crews Savin
Slide 10: 2019 exploration program
EXPLORATION UPDATE 2019 exploration program Status per July 2019 – two new wells added in Q2 License Prospect Operator Aker BP Est. Pre-drill Status share spud mmboe PL869 Froskelår Main Aker BP 60 % Q1 45 - 153 Discovery 60-130 mmboe PL857 Gjøkåsen Equinor 20 % Q1 26 - 1427 Dry PL033 Hod Deep West
Slide 11: Operational update
Operational update 11
Slide 12: Production overview
OPERATIONAL REVIEW Production overview Production per hub, mboepd Production efficiency per hub Alvheim Valhall Skarv Ivar Aasen Ula Other 2017 2018 2019-Q1 2019-Q2 155.7 158.7 98% 97% 138.8 87% 85% 127.3 53% 77.4 46% 60.0 15.6 2014 2015 2016 2017 2018 Q1-19 Q2-19 Alvheim Ivar Aasen Skarv Ula Valhal
Slide 13: Alvheim
OPERATIONAL REVIEW Alvheim Volund sidetrack well on stream Skogul development on track Frosk test producer completed Discovery Froskelår NE - Rumpetroll ongoing Production (mboepd) Production efficiency Alvheim Bøyla Vilje Volund 98.4 % 95.2 % 96.0 % 98.3 % 96.8 % 96.7 % 62.9 60.1 58.4 56.7
Slide 14: Valhall
OPERATIONAL REVIEW Valhall Valhall Flank West on track – platform installed Valhall QP topside removed Lower production in Q2 due to planned maintenance Production (mboepd) Production efficiency Valhall Hod 45.8 91.2% 94.5% 39.6 84.2% 84.5% 87.6% 34.5 36.0 33.7 24.5 53.4% Q1-18 Q2-18 Q3-18 Q4-
Slide 15: Safe and efficient decommissioning
OPERATIONAL REVIEW Safe and efficient decommissioning Removal of Valhall QP Recovery of Jette Xmas trees 15
Slide 16: Ivar Aasen
OPERATIONAL REVIEW Ivar Aasen New well on stream – completed with Fishbone Currently drilling next production well Production down in Q2 due to power outages Production (mboepd) Production efficiency 24.4 23.7 23.3 22.7 22.5 98.3% 91.2% 90.4% 93.2% 93.2% 86.6% 19.1 Q1-18 Q2-18 Q3-18 Q4-18 Q1-1
Slide 17: Skarv
OPERATIONAL REVIEW Skarv Steady production and high efficiency Increased gas injection to optimize liquids production Ærfugl development on track • Drilling and subsea installation in H2 • Concept selected for Phase II – FID planned in Q4 Production (mboepd) Production efficiency Liquids Natur
Slide 18: Ula
OPERATIONAL REVIEW Ula Lower production due to planned maintenance Conversion of Ula DP completed New drilling campaign started Production (mboepd) Production efficiency Ula Tambar Oda 10.8 10.5 72.2% 74.6% 8.4 8.2 8.1 62.5% 66.7% 65.9% 6.2 46.1% Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q1-18 Q2-18
Slide 19: Johan Sverdrup
OPERATIONAL REVIEW Johan Sverdrup On track All topsides installed Remaining activities before production start: • Hook-up, commissioning and completion • Tie-back of pre-drilled wells • Tie-in of export pipelines Production start planned for November PDO for Phase 2 approved by the authoriti
Slide 20: NOAKA – the largest project remaining on the NCS
OPERATIONAL REVIEW NOAKA – the largest project remaining on the NCS Liatårnet discovery highlights the benefits of an area development Growing resource base… • Total recoverable resources ~700 mmboe (Aker BP interest >60% avg.) • Nipa exploration well to be drilled in Q3 …highlights the need for
Slide 21: Financial review
Financial review 21
Slide 22: Oil and gas sales
FINANCIAL REVIEW Oil and gas sales Volume (mboepd) Realised prices (USD/boe) Petroleum revenues (USDm) Production Sales Liquids Natural gas -20% -13% +8% -9% 158.7 162.0 69.3 858 63.9 780 140.7 127.3 -33% 38.1 25.6 Q1- Q2- Q1- Q2- Q1- Q2- Q1- Q2- Q1-2019 Q2-2019 2019 2019 2019 2019 2019 2019 2019 20
Slide 23: Income statement
FINANCIAL REVIEW Income statement USD million Q2 2019 Q1 2019 Q2 2018* Total operating income 785 836 925 Production costs 198 200 151 Other operating expenses 4 7 1 EBITDAX 583 629 773 Exploration expenses 60 90 75 EBITDA 522 539 698 Depreciation 168 183 183 Impairment losses - 69 - Operating profi
Slide 24: Statement of financial position
FINANCIAL REVIEW Statement of financial position USD million Assets 30.06.19 31.03.19 31.12.18* Equity and liabilities 30.06.19 31.03.19 31.12.18* Goodwill Equity 2,664 2,799 2,977 1,791 1,791 1,860 Other intangible assets Other provisions for liabilities 2,522 2,483 2,433 2,560 2,505 2,581 incl. P&
Slide 25: Increased financial capacity and reduced cost
FINANCIAL REVIEW Increased financial capacity and reduced cost New Revolving Credit Facilities (RCF) Debt maturity profile (USD million) USD 4 billion, senior unsecured Replaces the secured RBL, with extended maturity Reduced interest cost and commitment fee New bond issued USD 750 million,
Slide 26: Cash flow – second quarter 2019
FINANCIAL REVIEW Cash flow – second quarter 2019 USD million CF Operations 208 CF Financing 21 CF Investing 595 414 87 40 365 188 114 102 14 Opening Net debt Operations Tax paid Capex & Expex Abex Dividends Other Closing balance drawn before tax Leases balance 26
Slide 27: Tax payments
FINANCIAL REVIEW Tax payments USD million Fixed instalments for 2019 Estimated instalments for 2019 340 208 212 212 163 106 106 106 67 69 34 34 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 The instalments for 2019 are based on company estimates, and are converted from NOK
Slide 28: Guidance summary
FINANCIAL REVIEW Guidance summary Actual per 2019-6M Updated 2019 guidance1) Production2) 142.9 mboepd 155-160 mboepd USD 1.6-1.7 billion Capex3) USD 740 million (previous USD ~1.6 billion) USD ~550 million Exploration spend USD 278 million (previous USD ~500 million) USD ~100 million Abandonment sp
Slide 29: Concluding remarks
Concluding remarks 29
Slide 30: Priorities ahead
AKER BP Priorities ahead Maersk Invincible at Valhall Flank West Execute Safe and efficient operations Excellent project execution Improve Keep momentum on improvement agenda Leverage technology to drive value creation High exploration and appraisal activity Grow Mature resources to rese
Slide 31: Aker BP
& AkerBP www.akerbp.com