Okea Asa · OSL:OKEA
Okea Asa — Pareto Securities' 28th Energy Conference 2021
18 slides from Okea Asa's conference presentation, Sep 16, 2021
Slide 1: Delivering value on the Norwegian Continental Shelf
Delivering value on the Norwegian Continental Shelf CEO Svein J. Liknes Pareto Securities’ 28th Energy Conference 16 September 2021
Slide 2: General and disclaimer
General and disclaimer This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared o r made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and
Slide 3: OKEA – in a nutshell
OKEA – in a nutshell • Established in 2015 with a vision to be a leader in safe and cost- effective field developments and operation of smaller fields • Acquired 15% in Yme in 2016 • Acquired Shell’s share in Draugen and Gjøa for NOK 4.5 billion in 2018 and became operator for the Draugen field • Li
Slide 4: OKEA portfolio
OKEA portfolio Production Development Exploration Draugen 32 licences area All on the Norwegian Continental Shelf 2P Reserves 46 mmboe – 27/73% gas/liquids Draugen (44.56%, Op.) HQ 3 producing fields (Trondheim) Operations 16 147 boepd avg. production 2020 – 31/69% gas/liquids Gjøa (12%) (Kristiansu
Slide 5: Oil and gas production and production reliability
Oil and gas production and production reliability Production (boepd) Production reliability (%) 20,000 Draugen Draugen 16 047 16 171 16 557 Gjøa Gjøa 15,000 Ivar Aasen 91 99 99 97 99 13 303 13 210 7,592 7,246 7,944 10,000 6,654 7,128 5,000 8,293 8,998 99 99 99 96 100 7,758 6,390 5,828 0 345 259 286
Slide 6: Safety and emissions
Safety and emissions No leaks, no serious incidents Serious incident frequency – per million work-hours Total recordable incident frequency – per million work-hours 6.2 5.3 5.3 5.0 4.8 4.7 4.8 4.5 4.2 Zero serious incidents 3.4 last 2.5 years Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2
Slide 7: Oil and gas production, sales and revenues per asset
Oil and gas production, sales and revenues per asset Production (boepd) Sold volumes (boepd) 20,000 20,000 18 794 D raugen D raugen 16 047 16 171 16 557 G jøa G jøa I var A asen 14 634 15 198 I var A asen 15,000 15,000 14 232 13 303 13 210 9,272 13 048 7,592 7,246 Q2 21 7,944 Q2 21 7,055 7,514 7,450
Slide 8: Cash development H1 21
Cash development H1 21 NOK million 2,000 291 467 1,500 91 18 9 751 +475 1,000 1,346 500 871 0 Cash 31.12.20 Operating Net taxes received Investment Interest paid Payments of FX effect on Cash 30.06.21 activities * activities * lease debt cash held * E xpenditures relating to drilling of dry/non-comm
Slide 9: Brent oil prices above USD 70/bbl – Record high European gas prices
Brent oil prices above USD 70/bbl – Record high European gas prices UK natural gas and Brent oil prices UK natural gas, electricity, Rotterdam coal and CO2-quota prices Source: Refinitiv, *UK N BP = U K N ational Balancing Point 9
Slide 10: Sold volumes and average gas market price – 2020/YTD-21
Sold volumes and average gas market price – 2020/YTD-21 Record high seasonal European gas prices Pence/therm kboe 115 193 Q1 Q2 Q3 Q4 Q1 Q2 Q3 200 110 190 105 176 180 100 171 167 165 170 95 159 158 160 154 156 154 155 160 90 151 85 146 150 80 135 140 75 128 130 70 120 65 110 60 100 55 87 90 50 80 80
Slide 11: Lifted volumes and realised liquids prices versus Dated Brent – 2020/YTD-21
20 25 30 45 50 65 70 75 15 35 40 55 60 80 USD/bbl D RA Feb-20 632 Q1 26 G jøa Feb- 2 0 P rice data sources: Argus G jøa M ar- 2 0 36 G jøa A pr- 20 27 D RA M ay-20 587 Q2 G jøa M ay-20 18 20 G jøa Jun- 2 0 G jøa J ul- 2 0 24 Q3 D RA - A ug- 20 682 G jøa A ug- 20 15 G jøa Sep-2 0 32 D RA O ct-20 850
Slide 12: Draugen WI 44.56% - Hasselmus first gas Q4-23
Draugen WI 44.56% - Hasselmus first gas Q4-23 Net reserves H1-21 production 23.0 mmboe oil 7 200 boepd 4.8 mmboe gas • H1-21 production 7 200 boepd – 98 % production reliability • FID on Hasselmus in Q2 21 - a subsea tie-back to Draugen – first OKEA operated field development project • Adds 4.8 mmbo
Slide 13: Gjøa WI 12% – P1 and Duva/Nova tie-ins
Gjøa WI 12% – P1 and Duva/Nova tie-ins Net reserves H1-21 production gas 5.5 mmboe 7 400 boepd oil/NGL 3.1 mmboe • H1-21 production 7 400 boepd – 98 % production reliability • Two new wells in the P1 segment onstream in Q1-21 • 31 days shut down in Q2 including tie-in of Duva and Nova o OKEA to be c
Slide 14: Yme WI 15% - Production start H2-21
Yme WI 15% - Production start H2-21 Plateau production Net reserves 7 500 boepd net oil 9.4 mmboe • The jack-up Maersk Inspirer installed at location in Q4-20 • Project in final hook-up and commissioning phase progressing as planned • Production start expected in H2-21 • Production 7 500 boepd net t
Slide 15: OKEA guiding on production & capex
OKEA guiding on production & capex OKEA to receive compensation for deferred volumes on Gjøa for shut-downs related to Duva/Nova tie-ins Production – thousand boepd Capex* – NOK million Gjøa accelerated compensation 1.2-1.8 0-0.4 16.1 15.5-16.5 17-18 980 600–700 2020 actuals 2021 guiding 2022 outloo
Slide 16: OKEA Q3-21 total operating income in the range of NOK 1 billion
OKEA Q3-21 total operating income in the range of NOK 1 billion Higher market prices and higher volumes sold OKEA quarterly total operating income – NOK million 1200 1000 1000 800 584 607 600 524 400 321 275 200 0 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21e 16
Slide 17: Key milestones and deliveries H2-21
Key milestones and deliveries H2-21 • Start-up of Yme – stepping-up OKEA production o Production 7 500 boepd net to OKEA at plateau - the first-year average 5 600 boepd net to OKEA o Significant cost reductions and cash flow benefits from reorganisation of operations and ownership of Maersk Inspirer
Slide 18: Thanks for the attention
Thanks for the attention Svein J. Liknes CEO
Okea — Pareto Securities' 28th Energy Conference 2021 on 6ix