Slide 1: First quarter 2019
First quarter 2019 Aker BP ASA 26 April 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: First quarter 2019 key figures
AKER BP First quarter 2019 Strong operational performance Key figures Q1-19 Q4-18* Q1-18* Execute High production efficiency Production mboepd 158.7 155.7 158.6 Excellent project execution Sales mboepd 162.0 151.5 167.3 Realized liquids price USD/bbl 63.9 67.8 67.4 Realized gas price USD/scm 0.2
Slide 4: Production on plan – strong production efficiency
OPERATIONAL REVIEW Production on plan – strong production efficiency Production per hub, mboepd Production efficiency per hub Alvheim Valhall Skarv Ivar Aasen Ula Other 2017 2018 2019-Q1 158.7 96.8 % 98.3 % 155.7 94.3 % 93.9 % 90.6 % 138.8 74.6 % 77.4 60.0 15.6 2014 2015 2016 2017 2018 Q1-19 Alvheim
Slide 5: The Alvheim story continues
OPERATIONAL REVIEW The Alvheim story continues Exploration success and strong operational performance Discovery at Froskelår Main • Gross volume 60-130 mmboe Further maturing the opportunity set • Currently drilling Frosk test producer (and Froskelår NE) • Completion operation started at Volund
Slide 6: Record uptime at Ivar Aasen
OPERATIONAL REVIEW Record uptime at Ivar Aasen High production efficiency 98% Improved water injection • High voidage replacement • Higher oil/gas ratio • Mitigates risk related to power supply Two new production wells to be drilled this year Production (mboepd) Production efficiency Liquids N
Slide 7: Skarv finds innovative solutions
OPERATIONAL REVIEW Skarv finds innovative solutions Q1 production 22.6 mboepd • Reduced gas injection due to compressor motor failure • Temporarily higher gas and lower oil production • Compressor motor replaced late March Xmas tree repairs progressing well Good start for Ærfugl-related offsho
Slide 8: Ærfugl gets even better
OPERATIONAL REVIEW Ærfugl gets even better Further improvement in break-even Phase 1 on track for 2020 production start • Technology qualification and EPC on plan • Preparing for subsea campaign in Q3 • Drilling to commence in Q4 Phase 2 accelerated • One of the three wells to be drilled from Id
Slide 9: Ula preparing for next drilling campaign
OPERATIONAL REVIEW Ula preparing for next drilling campaign 9
Slide 10: Valhall in growth mode
OPERATIONAL REVIEW Valhall in growth mode Increasing production • Gradually improving production efficiency • Contribution from new wells Progressing the project portfolio • Valhall Flank West project on track • New 7-well campaign planned from WP platform • Hod E&A well dry – evaluating next st
Slide 11: Johan Sverdrup on track
OPERATIONAL REVIEW Johan Sverdrup on track Photo: Roar Lindefjeld / Espen Rønnevik / Equinor 11
Slide 12: Targeting maximum value creation from NOAKA
OPERATIONAL REVIEW Targeting maximum value creation from NOAKA NOAKA PQ Recoverable resources (mmboe) Krafla UPP ~550 ~300 PQ UPP Break-even oil price (USD/bbl) ~41 ~35 0 5 10km PQ UPP 0 5 10km All numbers based on Aker BP estimates as per January 2019 Break-even defined as the oil price necessary t
Slide 13: 2019 exploration program
EXPLORATION 2019 exploration program License Prospect Operator Aker BP Est. Pre-drill Result share spud mmboe PL869 Froskelår Main Aker BP 60 % Q1 Discovery 60-130 mmboe Completed PL857 Gjøkåsen Equinor 20 % Q1 Dry Ongoing PL033 Hod Deep West Aker BP 90 % Q1 Dry Planned PL869 Froskelår NE Aker BP 60
Slide 14: Using data to create more value
CONTINUOUS IMPROVEMENT Using data to demonstrating Digitalization create more value its value in production optimization Examples Optimizing logistics across the NCS My boat One Team Challenge: waste in traditional supply vessel planning Lean Solution: Data sharing tools (exChain) to drive impro
Slide 15: Financial review
Financial review 15
Slide 16: Oil and gas sales – higher volume and lower prices
FINANCIAL REVIEW Oil and gas sales – higher volume and lower prices Volume (mboepd) Realised prices (USD/boe) Petroleum revenues (USDm) Production Sales Liquids Natural gas +2% +7% -6% -4% 155.7 158.7 162.0 67.8 891 858 151.5 63.9 -20% 47.6 38.1 Q4- Q1- Q4- Q1- Q4- Q1- Q4- Q1- Q4-2018 Q1-2019 2018 2
Slide 17: Income statement
FINANCIAL REVIEW Income statement USD million Q1 2019 Q4 2018* Q1 2018* Total operating income 836 916 944 Production costs 200 178 195 Other operating expenses 7 8 4 EBITDAX 629 731 746 Exploration expenses 90 72 55 EBITDA 539 658 691 Depreciation 183 196 185 Impairment losses 69 20 - Operating pro
Slide 18: Statement of financial position
FINANCIAL REVIEW Statement of financial position USD million Assets 31.03.19 31.12.18* 31.03.18* Equity and liabilities 31.03.19 31.12.18* 31.03.18* Goodwill Equity 2,799 2,977 3,105 1,791 1,860 1,860 Other intangible assets Other provisions for liabilities 2,483 2,433 1,992 2,505 2,581 2,955 incl.
Slide 19: Cash flow – first quarter 2019
FINANCIAL REVIEW Cash flow – first quarter 2019 USD million 106 CF Operations 21 CF Financing CF Investing 364 696 126 21 188 200 114 2 45 Opening Drawn Operations Tax paid Capex & Expex Abex Dividends Forex Closing balance on RBL before tax Leases balance 19
Slide 20: Guidance summary
FINANCIAL REVIEW Guidance summary 2019 guidance1) 2019 actual YTD Comments Production 155-160 mboepd 158.7 mboepd Net production excl. over/underlift Excl. capitalized interest Capex USD ~1.6 billion USD 343 million Incl. payments on lease debt Exploration spend USD ~500 million USD 159 million Aban
Slide 21: Concluding remarks
Concluding remarks 21
Slide 22: Priorities ahead
AKER BP Priorities ahead Execute Safe and efficient operations Excellent project execution Lead the digital transformation of E&P Improve Reorganize value chains with alliances Apply new technology to drive value creation High exploration activity Grow Maturing resources to reserves 22
Slide 23: Aker BP
& AkerBP www.akerbp.com
Slide 24: Aker BP
& AkerBP www.akerbp.com