Aker BP’s quarterly numbers grow

Norwegian oil company Aker BP’s net profit nearly doubled in the third quarter of the year. Aker BP’s profit for the quarter was $112 million, up from $63 million a year ago.

Operating income for the quarter was $596 million, an increase from $248 million a year ago, mainly due to inclusion of BP Norge activities, following a merger between Det Norske and BP Norge which resulted in the creation of Aker BP.

Aker BP produced 12.1 million barrels of oil equivalent in the third quarter of 2017, up from $5.5 million a year ago. This corresponds to an average daily production of 131.9 thousand of oil equivalent barrels a day, versus 59.8 thousand a year ago.

The average realized oil price was $55($47 in 3Q 2016) per barrel, while gas revenues were recognized at market value of $0.20 ($0.15 in 3Q 2016) per standard cubic metre (scm).

Hess transaction

The company last week entered into an agreement to acquire Hess Norge for $2 billion. Through the transaction, Aker BP expects to strengthen its production and resource base. It will will become the sole owner of the Valhall and Hod fields.

“Aker BP continued to deliver a solid performance in the third quarter with stable, safe and efficient operations. An important strategic milestone was reached in October, when we announced the agreement to acquire Hess Norge AS. The transaction will strengthen Aker BP’s production and resource base, and we will increase shareholder dividends following the transaction,” CEO Karl Johnny Hersvik said on Monday.

The Hess transaction is expected to complete by the end of 2017. The company expects 2017 production – excluding the Hess transaction – to be in the upper half of the 135-140 mboepd guidance with a production cost of approximately 10 USD/boe.

Capital expenditure budget for 2017 is expected to be between $900 – 950 million. Guidance for 2017 exploration expenditures is unchanged at $280 – 300 million, while total cash spend on decommissioning is expected to be $80 – 90 million (previously $100 – 110 million).

Offshore Energy Today Staff