Aker BP reports $67 million net loss

  • Business & Finance

Norwegian oil company Aker BP posted a total income of $656 million in the fourth quarter of 2016, and a net loss of $67 million.

The company, which was created by a merger between Det norske and BP Norge in 2016, reported quarterly production of 126.5 thousand barrels of oil equivalent per day (mboepd), realizing an average oil price of $52 per barrel and a gas price of $0.19 per standard cubic meter (scm).

The integration between Det norske and BP Norge was completed on December 1, 2016, marking “day one” for the new firm. All licenses and activity of BP Norge have been transferred to Aker BP.

“Aker BP continued to deliver a solid performance in the fourth quarter with stable, safe and efficient operations. The Ivar Aasen production start-up 24 December – on schedule and within the overall budget framework – was a major milestone for the company as the operator. The company paid its first dividend in December and aims to sustain a minimum dividend level of $250 million per year going forward,” CEO Karl Johnny Hersvik says.

Aker BP expects its 2017 production to average at 128 – 135 mboepd. It will take part in seven exploration wells, four of which as the operator.

Also, the company plans to submit three PDO’s during 2017, relating to the Valhall Flank West, Snadd, and Storklakken projects.

Offshore Energy Today Staff

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