Slide 1: Third quarter 2019
Third quarter 2019 Aker BP ASA 22 October 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: Third quarter 2019 highlights
AKER BP Third quarter 2019 highlights Key figures Q3-19 Q2-19 Q3-18* Field developments on track Johan Sverdrup on stream 5 October Production mboepd 146.1 127.3 150.6 Ærfugl, Valhall Flank West and Skogul on track Sales mboepd 143.3 140.7 148.3 Strong operational performance Realized liquids pr
Slide 4: The Johan Sverdrup achievement
AKER BP The Johan Sverdrup achievement Below budget – ahead of schedule Operator: Main contractors phase 1: 4
Slide 5: Production overview
OPERATIONAL REVIEW Production overview Net production, mboepd Production efficiency Alvheim Valhall Skarv Ivar Aasen Ula Other 155.7 158.7 146.1 94.0% 93.0% 90.4% 91.0% 138.8 85.0% 127.3 77.4 60.0 15.6 2014 2015 2016 2017 2018 Q1-19 Q2-19 Q3-19 2017 2018 2019-Q1 2019-Q2 2019-Q3 2019-Q2 numbers impac
Slide 6: Alvheim
OPERATIONAL REVIEW Alvheim Frosk test production started Skogul on track for first oil in Q1-2020 Maturing new infill targets Swift action to repair Mid-Water Arch Production (mboepd) Production efficiency Alvheim Bøyla Vilje Volund 98% 97% 97% 96% 58.4 56.8 53.1 51.4 Q4-18 Q1-19 Q2-19 Q3-19
Slide 7: Valhall
OPERATIONAL REVIEW Valhall Preparing for new growth Valhall Flank West approaching first oil Drilling campaign ongoing at Valhall WP Stimulation program slightly behind plan Production (mboepd) Production efficiency Valhall Hod 91% 94% 45.8 87% 39.6 40.3 53% 24.5 Q4-18 Q1-19 Q2-19 Q3-19 Q4-18
Slide 8: Ivar Aasen
OPERATIONAL REVIEW Ivar Aasen Strong operational performance New wells on stream Continued digital innovation Follow-up and monitoring of discharge permits Production (mboepd) Production efficiency 23.3 22.5 22.5 98% 94% 94% 19.1 87% Q4-18 Q1-19 Q2-19 Q3-19 Q4-18 Q1-19 Q2-19 Q3-19 Maersk Int
Slide 9: Skarv
OPERATIONAL REVIEW Skarv Strong operational performance Ærfugl development on track Adding resources through exploration Production (mboepd) Production efficiency 23.5 22.6 22.7 98% 98% 21.7 93% 91% Q4-18 Q1-19 Q2-19 Q3-19 Q4-18 Q1-19 Q2-19 Q3-19 Odfjell Drilling’s Deepsea Nordkapp completing
Slide 10: Exploration success in the Skarv area
OPERATIONAL REVIEW Exploration success in the Skarv area Expanding the resource base through new discoveries Q3-19 Ørn 55-88 mmboe (gas) Aker BP 30% Operator Equinor Q3-19 Shrek 19-38 mmboe (oil/gas) Aker BP 30% Operator PGNiG Q4-19 Nidhogg pre-drill estimate 26-70 mmboe Aker BP 60% Operator Aker BP
Slide 11: Ula
OPERATIONAL REVIEW Ula Drilling campaign has started Tambar multi-phase pump – a digital success story Progressing long-term area strategy Production (mboepd) Production efficiency Ula Tambar Oda 8.4 8.6 8.2 76% 75% 66% 6.2 46% Q4-18 Q1-19 Q2-19 Q3-19 Q4-18 Q1-19 Q2-19 Q3-19 Photo: Tor Aune /
Slide 12: Using data to create more value
IMPROVEMENT Using data to create more value Examples Better production performance assessment Challenge: repeat peak performance every day Best Day Solution: use advanced visualization and analytics to explain performance differences in performance Production engineers at Alvheim and Valhall n
Slide 13: NOAKA
OPERATIONAL REVIEW NOAKA Significant resource base • Recoverable resources ~700 mmboe1) (average WI >60%) • Planning for Liatårnet appraisal in H1 2020 New infrastructure is needed • Many accumulations with various hydrocarbon types • Further exploration potential Aker BP favours a central pro
Slide 14: 2019 exploration program
EXPLORATION 2019 exploration program 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 Aker BP 90 % Q1 2 - 22 Dry PL869 Froskelår NE Aker BP 60
Slide 15: A leading explorer on the NCS
EXPLORATION A leading explorer on the NCS Aker BP net discovered volumes since 2016 (mmboe) Net discovered since 2016 by company (mmboe) 500 500 400 400 300 300 200 250 mmboe 200 target set for 2016-2020 achieved 100 100 0 0 2016 2017 2018 2019 YTD 2020 Aker BP Source: Norwegian Petroleum Directorat
Slide 16: Financial review
Financial review 16
Slide 17: Oil and gas sales
FINANCIAL REVIEW Oil and gas sales Volume (mboepd) Realised prices (USD/boe) Petroleum revenues (USDm) Production Sales Liquids Natural gas +15% +2% -11% -8% 146.1 140.7 143.3 69.3 780 62.0 721 127.3 0% 25.6 25.5 Q2- Q3- Q2- Q3- Q2- Q3- Q2- Q3- Q2-2019 Q3-2019 2019 2019 2019 2019 2019 2019 2019 2019
Slide 18: Income statement
FINANCIAL REVIEW Income statement USD million Q3 2019 Q2 2019 Q3 2018* Total operating income 723 785 966 Production costs 167 198 170 Other operating expenses 6 4 4 EBITDAX 550 583 791 Exploration expenses 70 60 94 EBITDA 480 522 698 Depreciation 206 168 189 Impairment losses 78 - - Operating profi
Slide 19: Reconciliation of tax expense
FINANCIAL REVIEW Reconciliation of tax expense Effective tax for Q3-2019 (USD million) “Other items” vs. forex changes, quarterly since 2016 USD million 78% -22% +43% +32% 130% 80 60 40 20 0 Δ USDNOK -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 -20 -40 Q3-19 -60 R² = 0.81 -80 19
Slide 20: Statement of financial position
FINANCIAL REVIEW Statement of financial position USD million Assets 30.09.19 30.06.19 31.12.18* Equity and liabilities 30.09.19 30.06.19 31.12.18* Goodwill 1,713 1,791 1,860 Equity 2,444 2,664 2,977 Other provisions for liabilities Other intangible assets 2,571 2,522 2,433 2,543 2,560 2,581 incl. P&
Slide 21: Cash flow – third quarter 2019
FINANCIAL REVIEW Cash flow – third quarter 2019 USD million 106 CF Operations 26 CF Financing CF Investing 488 435 315 115 35 5 102 188 5 Opening Net debt Operations Tax paid Capex & Expex Abex Other Dividends Closing balance drawn before tax Leases balance 21
Slide 22: Tax payments
FINANCIAL REVIEW Tax payments USD million For fiscal year 2017 For fiscal year 2018 For fiscal year 2019 Fixed instalments for 2019 Estimated instalments for 2019 340 208 212 163 106 106 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
Slide 23: Guidance summary
FINANCIAL REVIEW Guidance summary Actual per 2019-9M Updated 2019 guidance1) ~155 mboepd Production2) 144 mboepd (previous 155-160 mboepd) Capex3) USD 1161 million USD 1.6-1.7 billion Exploration spend USD 422 million USD ~550 million Abandonment spend USD 99 million USD ~100 million Production cost
Slide 24: Priorities ahead
AKER BP Priorities ahead Execute Safe and efficient operations Excellent project execution Improve Keep momentum on improvement agenda Leverage technology to drive value creation Start up of new fields and wells Grow Mature discoveries Loading structures for the vessel Seven Arctic for i
Slide 25: & AkerBP
& AkerBP www.akerbp.com