Capital Markets Update 2020

11. February 2020

Aker BP today presents its update to the capital markets. The strategy remains firm and the company is in an excellent position to deliver strong growth with low costs and strong environmental performance.

2020 guidance summary

  • In 2020, Aker BP estimates a production of 205-220 thousand barrels of oil equivalents per day.
  • Aker BP is investing in profitable growth, and the company estimates capital expenditure in 2020 at a level of USD 1.5 bn.
  • For 2020, Aker BP is planning to participate in ten exploration and appraisal wells, and expect exploration spend of around USD 500 million.
  • Abandonment spend for 2020 is estimated at USD 200 million.
  • Production costs per unit are estimated to be reduced by approximately 20 percent from 2019, down to an average of around USD 10 per barrel of oil equivalents.
  • Dividends are proposed at USD 850 million for 2020.

Low emissions producer

Aker BP continues to be an oil and gas producer with low carbon dioxide emissions intensity; less than half the global average, and below the average for the Norwegian Continental Shelf.

Today, Aker BP announced that its emissions intensity will be further reduced to a targeted level of less than five kilograms of carbon dioxide emitted per barrel oil equivalent as from 2020.

Progressing towards a joint development of the NOAKA area

The North of Alvheim and Krafla-Askja (“NOAKA”) area consists of the discoveries Frigg Gamma Delta, Langfjellet, Frøy, Fulla, Frigg, Rind and Krafla-Askja. Gross resources in the area are estimated to be more than 500 mmboe, with further upside potential from exploration and appraisal.

Aker BP is in a good and constructive dialogue with its partners to progress a joint technical solution for developing all the resources in the NOAKA area. The NOAKA development represents significant value creation to the Norwegian society and to the license holders.

Investor contact
Kjetil Bakken, VP Investor Relations, tel.: +47 91 889 889
Lars Mattis Hanssen, Senior IR Professional, tel.: +47 994 59 460

Media contact
Tore Langballe, VP Communications, tel.: +47 907 77 841
Ole-Johan Faret, Press Spokesman, tel.: +47 402 24 217