Results first quarter 2014

This article originates from the news archive of Det norske.

30. April 2014

Det norske oljeselskap ASA announces a good first quarter 2014. The development of the Ivar Aasen field is on schedule. Fabrication of the living quarters, steel jacket and platform deck is ongoing. A development concept has been agreed for the Johan Sverdrup field.

See a webcast from the presentation here.

Find the report for the first quarter 2014 here.

Find the presentation from the first quarter 2014 here.

The development of the Ivar Aasen field is progressing according to plan. Det norske is the operator of the field and has a 35 percent ownership interest. The field will be developed with a fixed steel jacket, platform deck and living quarters. In March 2014, construction of the living quarters commenced at Stord. The Ivar Aasen field extends into the neighbouring licence 457, located due east of Ivar Aasen, resulting in a larger development. Negotiations related to the distribution of ownership interests in the field are ongoing; these are due to be completed in June.

Field development Johan Sverdrup

Field development Johan Sverdrup

The Johan Sverdrup field

A development concept for the Johan Sverdrup field was agreed in February. The field will be developed in several phases. The first phase includes process platform, drilling platform, riser platform and living quarters, and the field centre has been designed so as to facilitate capacity for future development. The first development phase has capacity for production of more than 70 percent of the field’s resources.  The production capacity in the first phase will be between 315,000 and 380,000 barrels of oil equivalents per day. Statoil announced that the field contains between 1,800 and 2,900 million barrels. The total investment in the first phase is estimated at between NOK 100 and 120 billion.

The Johan Sverdrup field extends into three licences. Negotiations pertaining to the distribution of ownership interests are expected to be completed in the first quarter of next year, which is also when the Plan for development and operation of the field is to be submitted. Start-up of production from the Johan Sverdrup field is expected in the fourth quarter of 2019.

Discoveries

Det norske participated in two new discoveries in the first quarter; in the Trell and Langlitinden prospects. Langlitinden was the company’s first own-operated well in the Barents Sea. The Trell well was completed in licence 102F in February. A 21-metre gross oil column was encountered. Tests indicated good production properties. Det norske is a partner in the licence, with a 10 percent ownership interest. The licence partnership will evaluate the discovery further, together with other prospects in the licence.

The Langlitinden well in licence 659 in the Barents Sea encountered oil-bearing sand of Triassic age. Extensive testing has been carried out, indicating poor production properties. Det norske does not assess the volumes in the well to be commercially recoverable. Det norske holds a 20 percent ownership interest in production licence 659.

Production

Det norske produced 260,569 barrels of oil equivalents in the first quarter of 2014, averaging 2,895 barrels per day. More than half of the production, 1,458 barrels per day, originates from the own-operated Jette field, where Det norske has a 70 percent interest. The average realised oil price in the period was USD 107 per barrel.

Gro Haatvedt

Gro Haatvedt

Other events

Det norske was awarded six new licences in the APA round in January, of which two as operator. All licences are located in the North Sea. Gro G. Haatvedt will take up her position as Senior Vice President Exploration in Det norske during the second quarter.

Financials

Det norske reported NOK158 million (80) in revenues in the first quarter. Exploration expenses amounted to NOK 110 million (234), contributing to an operating loss of NOK 101 million (251). Net financial costs were NOK 60 million (32). The net result for the period was NOK 21 million (-20), after tax income of NOK 182 million (262).

The equity ratio as at end of Q1 2014 was 31 percent (42).

Summary of financial results and operating performance:

MNOK= NOK million

Q1 14

Q4 13

Q3 13

Q2 13

Q1 13

2013

     Jette (boepd), 70%

1 458

2 710

4 378

3 594

0

2 683

     Atla (boepd), 10%

750

1 031

981

1 446

1 253

1 177

     Varg  (boepd), 5%

500

412

377

398

425

403

     Glitne (boepd), 10%

0

0

0

0

43

11

     Enoch (boepd), 2%

0

0

0

0

0

0

     Jotun Unit (boepd), 7%

188

175

204

175

209

191

Total production (boepd)

2 895

4 328

5 940

5 613

1 929

4 463

Oil and gas production (Kboe)

261

398

547

511

174

1 629

Oil price realised (USD/barrel)

107

109

112

103

112

107

Operating revenues (MNOK)

158

254

324

286

80

944

EBITDA (MNOK)

-12

-400

-348

-127

-216

-1 091

Cash flow from production (MNOK)

112

151

269

227

37

684

Exploration expenses (MNOK)

110

544

588

271

234

1 637

Total exploration expenditures (expensed and capitalised) (MNOK)

151

400

581

373

306

1 659

Operating loss (MNOK)

-101

-1 182

-518

-277

-251

-2 227

Net profit/loss(-) for the period (MNOK)

5

-329

-158

-41

-20

-548

No of licences (operatorships)

77 (27)

80 (33)

74 (30)

72 (30)

69 (28)

80 (33)

 

Related sites and news:
Ivar AasenJette Johan Sverdrupproduction Trell Langlitinden APA