Aker BP Experiences Strong Growth.
Monday 16 January 2017
Aker BP ASA (“AKER BP”) increases reserves and maintains very good results in exploration, drilling and wells, projects and production. The company has a strong cash flow outlook and its robust balance sheet means freedom to manoeuvre. “We are positioned for further growth,” says Aker BP CEO Karl Johnny Hersvik.
In 2016, Aker BP’s production was 118,200 barrels of oil equivalents per day (boepd), about 80 per cent oil and 20 per cent gas. 2017 production is expected to increase to between 128,000 and 135,000 boepd, with an average production cost of 11 USD/boe. With the current portfolio, the company has the potential to produce 270,000 boepd in 2023 (from both sanctioned and non-sanctioned projects), representing a compound average growth rate of 12 percent.
The company’s recorded P50 reserves have grown to 711 million boe at the end of 2016 and contingent resources were estimated at 600 million boe at year-end 2016, an increase of 84% from the previous year.
Aker BP has a robust balance sheet with USD 2.5 billion in available liquidity, providing the company with ample financial flexibility. At year-end 2016, the company’s net interest-bearing debt was USD 2.5 billion. Aker BP plans investments (Capex) of USD 900-950 million in 2017. Exploration expenses (Expex) are expected to be between USD 280-300 million, while decommissioning expenditures (Decom) are estimated at USD 100-110 million in 2017.