Det norske oljeselskap reported nearly a 21% decline in Q2 2016 revenues, when compared to last year, however, the Norwegian exploration and development company continues to move forward with several of its big name projects.
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Ivar Aasen jacket. Image from Det norske. |
Revenues for the period came in at US$256 million, a 20.5% decrease from Q2 2015’s $322 million that the company said was mainly due to lower oil prices.
Production for the quarter was 62.440 boe/d, with a realized average oil price of $49/bbl.
Production from the Alvheim FPSO, located in the Alvheim field in the central North Sea, remained high at 97% in Q2 2016. Production from the tri-lateral BoaKamNorth commenced in May, and drilling of the Viper-Kobra wells was finalized in June with good drilling performance and very good reservoir outcomes.
At the Ivar Aasen project, located west of the Johan Sverdrup field in the North Sea, Det norske is progressing with planned start-up in Q4 2016.
“The drilling program at Ivar Aasen continues to progress ahead of schedule, with five oil producer and three water injection wells finalized. The topside was completed in Singapore in June and the modules have been transported to Norway for offshore installation planned in July. The construction of the living quarter at Stord in Norway is completed and the module is ready for transportation and installation on the field during July,” Det norske confirmed.
As for its merger with BP Norge, to form Aker BP, Det Norske said closing is expected in late Q3. The newly formed company will hold 97 licences on the Norwegian Continental Shelf, of which 46 are operated.
According the company, expectations for its 2016 capex will be approximately $900-920 million, representing a reduction due to project cost savings.
Exploration expenditures are expected to increase to some $200–220 million, due to an added number of wells.
In addition, production guidance for the year is anticipated to be between 55-60 MMboe/d, with production cost expected to average in the range $8-$9/boe.
“The second quarter has together with stable, safe and efficient operations, been characterized by high activity in the business development area,” Karl Johnny Hersvik, Det norske CEO said. “With the agreement to merge with BP Norge AS and the award of three licenses in the 23rd licensing round, we are moving towards our goal of becoming a leading independent offshore E&P company.”
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