Aker BP revealed today that it would invest between $900million and $950million this year.
The newly formed firm said it was eyeing growth with a robust balance sheet of $2.5billion.
“We are positioned for further growth,” said Aker BP CEO Karl Johnny Hersvik.
“I am very pleased with what the company has delivered during a period of low oil prices and challenging market conditions: Efficient operations with high operational uptime, the operated Ivar Aasen and Viper-Kobra developments delivered on time and budget, without serious incidents, and we discovered 24% of the total volumes on the Norwegian Continental Shelf in 2016.
“Our financial muscles have been strengthened considerably following the merger. We launched a dividend policy in connection with the establishment of Aker BP which will be continued in 2017.”
In 2016, Aker BP’s production was 118,200 barrels of oil equivalents per day (boepd), about 80% oil and 20% gas. 2017 production is expected to increase to between 128,000 and 135,000 boepd, with an average production cost of $11/boe.
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.
It’s projecting a production rate of 270,000 boepd in 2023 – a compound average growth rate of 12%.
Aker BP will spend up to $300million on exploration costs this year and up to $110million on decommissioning.
It has a company target to sustain a minimum dividend of $250million per year. The firm aims to increase this minimum baseline once Johan Sverdrup is in production.
Aker BP also has an ambition to discover ambition 250 million boe between 2016 and 2020.
“The company is well-positioned for achieving our ambition of becoming the leading offshore, independent exploration and production (E&P) company,” added Hersvik.
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