Aker BP delivered strong operational performance in the fourth quarter of 2023, with low cost and high efficiency, although production volumes were impacted by an unplanned shutdown at Alvheim. All field development projects continued progressing as planned, and the company maintained its low emissions intensity at an industry-leading level.

Highlights

• Strong production: Oil and gas production reached 444 mboepd in the fourth quarter and 457 mboepd for the full year 2023, in line with guidance
• Cost efficiency: Production cost amounted to USD 6.2 per barrel produced, both for the fourth quarter and the full year
• Low emissions: Greenhouse gas emissions averaged 2.8 kg CO2e per boe, both for the quarter and the full year, ranking among the lowest in the global oil & gas industry
• Progress on field developments: All projects are progressing as planned and within budget, with fabrication activities underway at multiple locations
• Strong financial performance: EBITDA of USD 3,174 million, operating profit of USD 2,154 million, net profit of USD 164 million, and free cash flow of USD 461 million.
• Returning value: Dividend per share increased to USD 2.4 for 2024, equivalent to USD 0.60 per quarter

Comment from Karl Johnny Hersvik, CEO of Aker BP:
“We ended the year on a strong note, successfully delivering on our targets despite experiencing some operational challenges in the second half. 

I would like to take the opportunity to underscore the strong efforts of our team during the unplanned shutdown at Alvheim, which demonstrate the dedicated commitment and problem-solving capabilities that characterise this company.

Furthermore, I am pleased to confirm that our field development projects are on track. The cost estimates remain unchanged, and we are one year closer to first oil and generating another wave of value creation for Aker BP and our stakeholders.

Ultimately, we maintain our position as a leader in the E&P industry through high efficiency, low operational costs and low emissions.” 

Guidance for 2024

Aker BP today also provides guidance for 2024, based on the company’s business plan, consisting of the following key parameters:

• Production of 410-440 mboepd 
• Capex of around USD 5 billion 
• Exploration spend of around USD 500 million 
• Abandonment spend of around USD 250 million 
• Production cost of around USD 7 per boe 
• Dividend of USD 2.4 per share (USD 0.60 per quarter)

Production

Aker BP’s net production was 40.9 (41.4) million barrels oil equivalent (mmboe) in the fourth quarter 2023, corresponding to 444.3 (449.8) mboepd. Net sold volume was 466.9 (450.0) mboepd. 

Exploration

Total exploration spend in the third quarter was USD 81 (72) million, while USD 67 (74) million was recognised as exploration expenses in the period, relating to dry well costs, seismic, area fees, field evaluation and G&G costs.

Drilling of the Ofelia prospect, in production licence 929 in the North Sea was completed in the fourth quarter. The well confirmed already proven volumes in the main reservoir and made an additional gas discovery in a side-track well. Combined preliminary volume estimates are between 27-52 million barrels of oil equivalent. Aker BP has 10 percent interest in the licence which is operated by Neptune Energy.

The Surtsey prospect in production licence 272 B (50 percent interest) was drilled in the quarter. The well proved a small oil discovery, which is currently concluded as non-commercial.

KeyFacts Energy: Aker BP Norway country profile