Norwegian oil company Aker BP reported a rise in both income and in production for the fourth quarter of 2017.
In the fourth quarter of 2017, Aker BP turned profitable, reporting a net income of $34 million, compared to a loss of $67 million in the fourth quarter of 2016. For the full year, net income was $275 million, up from $35 million in 2016.
Production in the period was 135.6 thousand barrels of oil equivalent per day, up from 126.5 thousand barrels a year ago, realizing an average oil price of $65 (vs $52 in q$ 2016) per barrel. Gas revenues were recognized at market value of $0.26 ($0.19 in 4Q 2015) per standard cubic meter. Production cost per barrel of oil equivalents was USD 11.8 (10.4).
During the quarter, Aker BP bought Hess Norge AS for $2.0 billion. Also, it submitted three Plans for Development and Operations for the Ærfugl, Valhall Flank West and Skogul fields.
The company expects 2018 production to be 155-160 mboepd with a production cost of approximately $12 boe. Capex for the year is expected to be around $1.3 billion, up from $888 million spent in 2017.
Guidance for 2018 exploration expenditures is $350 million, while total cash spend on decommissioning is also expected to be around $350 million.
Offshore Energy Today Staff