Aker BP Reports Skarv Downturn
Norway-only producer Aker BP said February 2 that lower output from its Skarv gas field took some of the shine off its 4Q results. Three shut-in wells, of which one was reinstated in December 2017, and a pressure build-up test on the Aerfugl test producer, limited production.
Aker BP net equity share of Skarv production was 29% down year on year at 21,403 barrels of oil equivalent/day (boe/d) and 13% lower than in 3Q2017. "Aker BP plans to reinstate one or both of the remaining shut-in wells during first half of 2018 [and] is also taking steps to prevent recurrence of these well failures elsewhere," it said.
Net profit was $34mn in 4Q2017, versus a loss of $67mn in the year ago quarter. Production at 135,600 boe/d was 7% higher. Realised average prices in 4Q2017 were $65/b for oil (up 25%) and $0.29/m3 for gas (up 37% from the $0.13/m3 in 4Q2016). Aker BP said important milestones achieved in 4Q2017 were the $2bn acquisition of Hess Norge, completed December 22, and submitting the development plans for Aerfugl (gas) and Valhall Flank West and Skogul (oil) fields. However it also noted the fatal accident on December 7 on drillrig Maersk Interceptor on the Tambar oil field.
Last month it was awarded 23 new licences in Norway’s APA 2017 licensing round, of which 14 as operator. It told analysts at a mid-January presentation that Aker BP has the potential to double production by 2023.