Slide 1: Third Quarter 2018
Third Quarter 2018 Aker BP ASA Karl Johnny Hersvik, CEO Alexander Krane, CFO 19 October 2018
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: Highlights
AKER BP ASA Highlights Oil & gas production, mboepd net Operations 180 Q3 production 151 mboepd 160 Positive appraisal results – dry wildcats Field development projects on track 140 120 Finance Q3 EBITDA USD 736 million, EPS USD 0.35 100 Solid cash flow – FCF per share USD 0.67 80 Quarte
Slide 4: Financials
Financials Third Quarter 2018
Slide 5: Statement of income
FINANCIALS Statement of income (USD million) Q3 2018 Q2 2018 Q3 2017 FY 2017 Total operating income 1,000 975 596 2,563 Production costs 165 164 134 523 Other operating expenses 4 1 3 28 EBITDAX 830 810 459 2,012 Exploration expenses 94 75 64 226 EBITDA 736 735 395 1,786 Depreciation 189 183 175 727
Slide 6: Statement of financial position
FINANCIALS Statement of financial position Assets Equity and liabilities (USD million) 30.09.18 30.06.18 30.09.17 (USD million) 30.09.18 30.06.18 30.09.17 Goodwill Equity 3,083 3,064 2,502 1,860 1,860 1,817 Other intangible assets Other provisions for liabilities incl. 1,979 1,986 1,615 3,024 2,992
Slide 7: Third quarter cash flow and liquidity
FINANCIALS Third quarter cash flow and liquidity Cash flow (USDm) Strong operating cash flow • Higher oil and gas prices • Production cost USD 11.9 per boe Capital spending within plan • Capex USD 310 million (ex. capitalized interest) • Expex USD 109 million 457 • Abex USD 72 million 697 Robu
Slide 8: 2018 Guidance
FINANCIALS 2018 Guidance Item Actual YTD per 30 September 2018 Updated 2018 guidance USD ~1.25 billion CAPEX* USD 823 million (previous USD ~1.3 billion) USD ~400 million EXPEX USD 275 million (previous USD ~425 million) 155 – 160 mboepd Production 156 mboepd (lower half) Production cost USD 11.8 pe
Slide 9: Acquisition of licence portfolio from Total
FINANCIALS Acquisition of licence portfolio from Total Strengthening Aker BP’s position in core areas Map of acquired licences (ex. Skarv area) 11 licences including 4 discoveries 83 mmboe net recoverable resources Consideration USD 205 million Closing expected in Q4 Area Licence Acquired Re
Slide 10: Acquisition of King Lear
FINANCIALS Acquisition of King Lear Planning tie-back to Ula King Lear and Ula Gas/condensate discovery • NPD estimate: 99 mmboe gross (42% liquids) Acquisition of Equinor’s 77.8% interest • Consideration USD 250 million • Closing expected in Q4 Strong synergies with Ula • Gas from King Lear t
Slide 11: Operations
Operations Third Quarter 2018
Slide 12: Alvheim
ALVHEIM AREA (~65%) Alvheim High regularity and strong performance Kameleon Infill South well Production efficiency 96% Excellent drilling of Kameleon infill well • Tri-lateral well with more than 10 km of reservoir drilled • First well delivered with new alliance model • Delivered 10% faster th
Slide 13: The success story continues
ALVHEIM AREA (~65%) The success story continues Frosk leaping ahead Gekko resources firmed up Exploration drilling on Froskelår and Rumpetroll Oil column thicker than previously assumed Multilateral production and appraisal well planned in 2019 Excellent reservoir properties Estimated gros
Slide 14: Targeting further improvements at Valhall
VALHALL AREA (90%) Targeting further improvements at Valhall STMF – significant savings potential Q3 production 36.0 mboepd net Time consumption on well stimulation • Up 7% from Q2 • Production efficiency 88% • Completion of new IP wells behind plan Testing Single-Trip Multi-Frac (STMF) • More e
Slide 15: P&A campaign successfully completed
VALHALL AREA (90%) P&A campaign successfully completed Average time per well reduced by more than 50 percent Valhall P&A performance 120 Low complexity High complexity Trend 100 80 Days 60 40 20 0 A-25 A-29 A-04 A-14 A-10 A-22 A-05 A-09 A-17 A-20 A-06 A-15 A-23 A-19 A-18 A-30 A-12 A-28 A-21 A-16 A-2
Slide 16: Valhall projects on track
VALHALL AREA (90%) Valhall projects on track Valhall Flank West Valhall Flank North Water Injection Photo: Hans Petter Helland, Aker BP Photo: Marton Audun Haga, Aker BP. Maersk Invincible arriving at Valhall Flank North 16
Slide 17: Rejuvenating Ula as an area hub
ULA (80%) / TAMBAR (55%) Rejuvenating Ula as an area hub Ambition to extend lifetime beyond 2040 Significant upside potential in the Ula area Conversion of Ula DP underway • Preparing for new drilling campaign next year Oda on track for production start in Q2 2019 • Cassidy exploration well comi
Slide 18: King Lear – strong synergies with Ula
ULA (80%) / TAMBAR (55%) King Lear – strong synergies with Ula Among the largest undeveloped discoveries on NCS King Lear and Ula Gas/condensate discovery • Resource range 60-170 mmboe gross* (NPD: 99) • Gas/liquids ratio ~60/40 • Agreement to acquire 77.8% interest from Equinor Targeting tie-ba
Slide 19: Ivar Aasen
IVAR AASEN (34.8%) Ivar Aasen Water injectors completed Hanz appraisal in line with expectations 19
Slide 20: Skarv
SKARV AREA (23.8%) Skarv Temporarily lower gas exports due to increased gas injection Ærfugl development progressing as planned Alve North acquisition provides new tie-back opportunity 20
Slide 21: Johan Sverdrup progressing steadily
JOHAN SVERDRUP (11.6%) Johan Sverdrup progressing steadily Photo: Bo Randulff / Equinor 21
Slide 22: NOAKA – field of the future
NORTH OF ALVHEIM / ASKJA / KRAFLA NOAKA – field of the future Interest in Rind discovery increased from 30 to 92 percent Preparing for concept selection by year-end Aker BP favors a central processing hub • Maximum resource utilisation • Highest value creation • Capacity for future discoveries
Slide 23: Exciting drilling ahead
EXPLORATION Exciting drilling ahead Positive appraisals at Gekko and Hanz in Q3 • Dry wells on Slengfehøgda, Gråspett and Scarecrow Two follow-up wells to Frosk in Q4 • Targeting up to 300 mmboe (gross unrisked) Cassidy back on 2018 plan • Near Oda (Ula tieback) JK – large prospect with a go
Slide 24: Continued strong focus and speed on our Digital journey
DIGITALIZATION Continued strong focus and speed on our Digital journey Digital lab running at full speed Delivering tangible results Condition-based maintenance dashboard for valves and dampers Improve tracking of status and use of equipment currently maintained/tested in fixed time intervals El
Slide 25: Aker BP
& AkerBP www.akerbp.com