Aker Bp Asa · OSL:AKRBP

Aker Bp Asa — Det norske oljeselskap — Q3 2010 Earnings Presentation

37 slides from Aker Bp Asa's earnings presentation, 2010

  1. Slide 1: Third quarter 2010 presentation

    Third quarter 2010 presentation TICKER – - DETNOR - CEO Erik Haugane - VP IR Knut Evensen - VP HES Anita Utseth

  2. Slide 2: Disclaimer

    Disclaimer All presentations and their appendices (hereinafter referred to as “Investor Presentations”) published on www.detnor.no have been prepared by Det norske oljeselskap ASA (“Det norske oljeselskap ” or the “Company”) exclusively for information purposes. The presentations have not been revie

  3. Slide 3: Agenda

    Agenda:  Highlights & production  Financials  Exploration  Development projects  Outlook & Summary  Appendix 3

  4. Slide 4: Highlights

    Highlights  David gas and condensate discovery (PL 102C)  Secured harsh environment rig to summer 2014  Currently drilling on Stirby and Dalsnuten  Eleven exploration wells planned for 2011 • 7 North Sea, 2 Norwegian Sea and 2 Barents Sea  Applied for prospective acreage in 21st round  Frøy de

  5. Slide 5: Production

    Production Production & realised oil prices Issues Boepd USD/bbl  Third quarter production 3000 85 was 1 861 boepd 2500 80  Realised oil price 2000 USD 77.8 per barrel 75 1500  Planned maintenance on 70 Varg, Jotun and Glitne, 1000 resulted in reduced output 500 65 compared to second quarter 0 60

  6. Slide 6: Agenda

    Agenda:  Highlights & production  Financials  Exploration  Development projects  Outlook & Summary  Appendix 6

  7. Slide 7: Financial position as of third quarter

    Financial position as of third quarter ”net cash” position as of Q3 Elements  Total cash and tax receivables for refund in 2010/11: 4 980 MNOK 1 801 2 954  Interest bearing debt: Short term debt and convertible bond : 3 368 MNOK 2 078  ”Net cash” position: 1 612 MNOK, 414 1 612 down from 1 691 MN

  8. Slide 8: Profit & Loss Q3 2010

    Profit & Loss Q3 2010 MNOK Q3 2010 Q2 2010 Comment Operating revenues 80.6 88.7 Reduced production and oil price No dry wells, partially offset by high seismic Exploration expenses 209.1 367.2 activity and G&G studies Change in inventories 0.7 -1.6 Production cost 35.8 39.6 Payroll expenses 7.5 1.4

  9. Slide 9: Exploration expenses Q3 2010

    Exploration expenses Q3 2010 MNOK Q3 2010 Q2 2010 Comment Seismic, well data, field studies, etc. 117.3 1.7 Exploration expenses from license 81.0 87.2 participation Expensed capitalized exploration wells 0.0 9.8 previous years Expensed dry wells this quarter 10.5 293.6 No dry wells booked in Q3 – c

  10. Slide 10: Balance Sheet 30.09.2010

    Balance Sheet 30.09.2010 Assets (MNOK) Q3 2010 31.12.09 Comment Goodwill 666.5 697.9 Capitalized exploration exp. 1 935.3 893.5 Capitalized Q3 Dalsnuten, Stirby, David, Grevling, Storklakken – MNOK 248 Other intangible assets 1 218.5 1 320.5 Property, plant and equipment 409.0 447.6 Tax receivables

  11. Slide 11: Balance Sheet 30.09.2010 (cont.)

    Balance Sheet 30.09.2010 (cont.) Equity and Liabilities (MNOK) Q3 2010 31.12.09 Comment Equity 3 491.3 3 850.5 Pension obligations 24.3 19.9 Deferred taxes 1 885.4 1 173.5 Abandonment provision 233.6 224.5 Deferred revenues 2.8 5.6 Total Provisions Derivatives 0 21.8 Convertible bonds 413.9 390.6 Sh

  12. Slide 12: Agenda

    Agenda:  Highlights & production  Financials  Exploration  Development projects  Outlook & Summary  Appendix 12

  13. Slide 13: Secured rig capacity to summer 2014

    Secured rig capacity to summer 2014  Harsh environment rig for deepwater Norwegian Sea and the Barents Sea  Flexible day rate structure • USD 450 000/day below 500 meters • USD 550 000/day in deep waters and the Barents Sea  Tight market – Two Barents Sea sublets done at higher day rates  Asset

  14. Slide 14: Discovery on David in PL 102C

    Discovery on David in PL 102C  Gas/condensate discovery  1 Bcm of gas proven  15 to 20 MBOE in estimated total recoverable volumes  Potential development is a subsea tie-back David to Heimdal, via Byggve / Skirne  The exploration well can be reused as a production well.  Water depth 119 meters

  15. Slide 15: Considering appraisal well to the north

    Considering apprasial well to the north 25/5-7 28 m Gas potential upside 114 m gas or oil in Brent Brent Gp Statfjord Fm Pressure data indicates a deeper hydrocarbon column - gas or oil downflank? Brent erosion

  16. Slide 16: PL 341 Stirby – currently drilling

    PL 341 Stirby – currently drilling  Large HTHP prospect • East Brae, Miller and Gudrun analogue  Recoverable gas/condensate  Stirby Upper 150 MBOE  High case Upper 800 MBOE  Stirby Deep 190 MBOE  Main risk  Reservoir quality  Stratigraphic seal  Water depth 120 meters  Operator Det norske

  17. Slide 17: PL 392 Dalsnuten – currently drilling

    PL 392 Dalsnuten – currently drilling  Gross unrisked resources 600 MBOE Luva Asterix  Main risk is the presence of reservoir  License with several prospects PL392 Dalsnuten  Deep water well - 1 446 meters  Gro Drilling with Aker Barents  Operator Norske Shell  Det norske holds 10 percent Vic

  18. Slide 18: Exploration roadmap

    Exploration roadmap* Dalsnuten Gullris Skaugumsåsen Comprehensive 2011 drilling campaign PL Prospect & Net % Drilling Gross resources (operator) start Mboe 392 Dalsnuten (Shell) 10 ongoing 600 Dovregubben 341 Stirby 30 ongoing 150-800 468 Dovregubben 95** Q4-10 100-220 482 Skaugumsåsen 65 Q1-11 20-9

  19. Slide 19: PL468 - Dovregubben

    PL468 - Dovregubben  Planned drilled in Q4 2010 with Aker Barents  Located in Møre Basin – close to Ormen lange Dovregubben  Gross unrisked resources 100-220 MBOE  Palaeocene play  Main risk: Trap integrity Dovregubben  Water depth 275 metres  Operator Det norske  Det norske holds 95 percent

  20. Slide 20: PL482 - Skaugumsåsen

    PL482 - Skaugumsåsen Skaugumsåsen  To be drilled by Aker Barents after Dovregubben  Located on Dønna Terrace – South East of Norne  Gross unrisked resources 20-90 MBOE  Jurassic play Well 6508/1-2  Main risk: Trap integrity  Water depth 390 metres  Operator Det norske  Det norske holds 65 pe

  21. Slide 21: PL522 - Gullris

    PL522 - Gullris  Planned drilled with Aker Barents after Skaugumsåsen  Located in the Vøring Basin Asterix Luva  Gross unrisked resources 700-1700 MBOE PL392 Gullris Dalsnuten  Upper Cretaceous play Gro  Main risk: Trap integrity  Many prospects with DHI in the license Victoria  Water depth 1

  22. Slide 22: PL 272 – Krafla

    PL 272 – Krafla  Planned drilled in Q2 2011  Located between Oseberg and Frigg  Rotated Jurassic fault blocks  Estimated gross unrisked resources  Krafla 10-50 MBOE  Krafla West dependent on presence of hydrocarbons in Krafla  Operator Statoil  Det norske holds 25 percent 22

  23. Slide 23: The 21st round applications submitted

    The 21st round applications submitted  Applied for licenses in the Barents Sea and the Norwegian Seas  Big prospects in new play models  Det norske would like to see Barents Sea East and Barents Sea North included in the next concession round Norvarg Salina 23

  24. Slide 24: Agenda

    Agenda:  Highlights & production  Financials  Exploration  Development projects  Outlook & Summary  Appendix 24

  25. Slide 25: Frøy – PDO planned in 2011

    Frøy – PDO planned in 2011  WAG / SWAG depletion strategy revisitted  Aims at PDO summer 2011  First oil summer 2014  Reserves • Gross 60 MBOE  Operator Det norske • Det norske holds 50 percent 25

  26. Slide 26: Draupne – progressing according to plan

    Draupne – progressing according to plan  Studying joint field development solutions with Lundin Petroleum, operator of the Luno field  Draupne holds estimated gross recoverable reserves of 110 to 150 Mboe  Draupne and Luno hold an estimated 250 to 300 Mboe, combined  This decades largest North S

  27. Slide 27: Agenda

    Agenda:  Highlights & production  Financials  Exploration  Development projects  Outlook & Summary  HSE 27

  28. Slide 28: Outlook & Summary

    Outlook & Summary  Exploration  Two high impact wells around the corner – Dalsnuten and Stirby  Reassessment of the exploration strategy. Establishing core areas on NCS  21st round application contains several large prospects and an award is expected to enhance Det norske’s exploration portfolio

  29. Slide 29: DETNORSKE

    DETNORSKE NEST STORST PA NORSK SOKKEL

  30. Slide 30: It’s all about preparedness

    It’s all about preparedness TICKER – - DETNOR VP HSE Anita Utseth

  31. Slide 31: Risk based management

    Risk based management  Planning is everything, but we have to be prepared.  We integrate HSE and emergency preparedness in well design and planning  Blow out analysis,  Environmental risk analysis  Emergency preparedness analysis  Site spesific emergency preparedness analysis  Risk analysis o

  32. Slide 32: Professionalism

    Professionalism Challenges  A competent and effective emergency preparedness organization  Ensure adequate and competent resources for emergency situations  Ensure continuity in emergency response tasks, training and exercises  Coordination of emergency response resources Answer  Establishment

  33. Slide 33: It’s all about co-operation

    It’s all about co-operation  Initiated and established the Operator’s Association for Emergency Preparedness (www.offb.no)  Professional non profit organisation  Integrated part of the operator’s organisation  Recognition of Emergency Response as a disciplin 33

  34. Slide 34: The emergency preparedness organisation

    The emergency preparedness organisation Hammerfest Receiving services Brønnøysund Kristiansund Bergen Stavanger 34

  35. Slide 35: Oil Spill Contingency

    Oil Spill Contingency Membership in NOFO www.nofo.no Projects initiated by Det norske  Co-operation of 25 companies  Mapping of special areas (eg.  The operators are responsible Lovunden and Vikna)  Close cooperation with NOFO,  Contingency plans for the coastal both analysis and design of the

  36. Slide 36: Contingency plan for Dovregubben

    Contingency plan for Dovregubben OFFSHORE RESPONSE  Surveillance from helicopters, airplane, vessels and satellite  Shipbased oil radar, IR-camera  Mobilisation of Sintef within 48 hours  Dedicated field system  8 oil spill combat systems in barrier 1 and 2 within 24 hours  Access to chemical

  37. Slide 37: DETNORSKE

    DETNORSKE IEST STORST PA NORSK SOKK‘

Det norske oljeselskap — Q3 2010 Earnings Presentation on 6ix