Kjell Inge Rokke’s Aker BP scores record production in Norway

Norwegian independent Aker BP produced far more oil than forecast in the second quarter of this year, establishing a new company record in the process.

Aker BP is one of the top three players in Norway through operating six major assets, being a key partner in Equinor’s huge Johan Sverdrup field and with plans to explore and develop other discoveries.

This morning, the Oslo-listed company said its average equity production for the three months to the end of June had hit 480,700 barrels of oil equivalent per day, a new quarterly record.

Out of these volumes, oil accounted for 408,900 bpd and gas contributed 68,000 boepd.

Aker BP said this strong performance was driven by continued production ramp-up from phase two of Johan Sverdrup, as well as a general increase in production efficiency.

Its share price had edged up about 1.33% to Nkr265.8 ($24.86) on the Oslo bourse at publication time.

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Analyst research from Barclays said average production in the year to date – about 467,000 boepd – is running ahead of Aker BP’s full-year guidance range of 430,000-460,000 boepd.

As a result, it expects the company to post a second quarter Ebitda of $2.9 billion when it reports to the market on 13 July, with cash flow from operations of about $140 million and a net debt of $3.1 billion.

In terms of oil and gas sales, Barclays said Aker BP achieved “decent price realisations.”

Liquids sales averaged about $76.8 per barrel, slightly lower than the average Brent price for the quarter, while the average gas realisation of $63.9 per boe was marginally better than forecast.