BlueNord ASA

Good morning and welcome to BlueNord's results presentation for the second quarter of 2024. It is as always a pleasure to be here this morning and I'm joined by the rest of the executive team to run you through not only the highlights of our recent performance, but also provide some more insight into why our outlook for 2024 and beyond is so strong. If we start with our performance in the first half, it's been a period that has been very much characterized by strong performance of our base assets, continued progress on the Tyra project, and high levels of Blue Nord-driven activity that we believe support our long-term position. And I think that's an important point as we run through the presentation, is that we are very clear on what our focus is. It's positioning Blue Nord for future success. So let's turn over to have a look at what we've been doing in some more detail. So this slide covers really the activities that we've been busy with in the first half of this year. And fundamentally, it goes across all of our strategic priorities. So operationally, we've made progress on not only the base assets, but also the Tyra redevelopment. So starting with the base assets, for our infill well program, we've had the continued contribution from the first half done infill well, which started up at the end of Q1 of this year. In Q2 we also sanctioned a further well in Halfdan to be drilled later in 2024. We spudded the Hemj well which is a high impact opportunity with the result due in Q3 of this year and that's something that has the potential to add eight million barrels of oil equivalent net to Blue Nord in a success case. The drilling activity that I've just mentioned is unlocked by having a rig active in the DUC. And in that vein, I'm happy to announce this morning that we've also secured a 17-month extension of the shelf drilling winner rig, which will run from March 2025. Turning over to Tyra, we're continuing to make progress on the project, but startup has been impacted by some teething issues. So we had the first export of new gas in April of this year, but that was followed shortly thereafter by issues with the compressor transformers. And that ultimately has led to a temporary cessation of production. So together with the operator, the DUC is very much focused on not only the temporary restart of gas export, but also implementing a permanent solution that will allow us to reach plateau later in the year. On the temporary restart, it's positive that we will shortly have volumes being exported from Harold. And in addition to that, the operator continues to progress further options to export higher volumes before the permanent solution is implemented. And then turning over to that permanent solution, so the IP compressor transformer, which was the first issue that we had in April, that repair is progressing well. In addition to that, hookup and commissioning activities are now complete on TIRA West and the TIRA satellites. So while the root cause of the issue that has impacted the transformers still needs to be fully determined by the operator, TEPDK currently believes that this can be rectified in the time prior to the repaired compressors being installed offshore, And consequently, they have kept their current plan, which is that maximum technical capacity on Tyra should be reached by the 30th of November. And then supporting the ramp up to plateau production, the completion of the hookup and commissioning activities that I mentioned before, that will drive an accelerated ramp up. Now, turning just briefly to think about the significance of Tyra. Tyra is a hugely important asset, not just to Blue Nord, but also to Total Energies in Denmark. Denmark as a country and the EU more broadly. So reaching plateau production as soon as possible is very much the number one priority. Well, it's of course disappointing that we've not had a flawless startup and a smooth journey to plateau. I think we can take comfort from two things as we look forward. The issues that have been identified have solutions. They're not reflective of any underlying issue with the integrity of the TIRA facilities, but rather reflect the fact that when you turn everything on for the first time in a project like this, it often doesn't start up exactly as you expect, and some work is needed to get the asset fully operational. We also take comfort from the fact that Total Energies in Paris is increasingly supporting the Danish team, and that will help drive the outcome that we all know is so important. If we then turn over to look at what's been achieved on the corporate side, and I'll talk more about this on subsequent pages, so just to provide a summary here, we completed the capital structure reset that we told you about earlier this year. This was important for us as it was necessary to ensure that their balance sheet reflects the strength of our forward credit profile and that any distribution restrictions that we have are set such that they enable us to deliver our stated distribution policy. And with that in mind, I'm very pleased to say that that capital structure reset is now done. We had two key deliverables in the second quarter. One was that we upsized our RBL facility and extended the maturity. And the second was that we issued a new senior unsecured note, BNOR 16. And what that means is that we're now fully set to deliver material distributions to shareholders when Tyra is at plateau production. If we turn over to the next slide just to look at some of the highlights of the performance in the second quarter, we had production in Q2 of 24,500 barrels of oil equivalent today. That was an increase of 1,000 barrels of oil equivalent per day compared to Q1 and was in line with our guidance for the period. It was driven by strong base asset performance, which was the result of the positive results from the ongoing well reservoir optimisation and management campaign, and the continued contribution from the first half-dan infill well, which is producing in line with pre-drill expectations. The activity levels that we have, including HemJ and the second infill well that I mentioned previously, will support our outlook for 2024 and beyond. As I also noted on the previous page, for Tyre, we expect the near-term restart of gas export with Harold volumes coming shortly. We then expect a ramp up in Q3 and plateau in Q4 per the operator's current plan. And what we expect that that will drive is net production to Blue Nord of over 55,000 barrels a day of oil equivalent in 2025. That'll be important for us because the cash flow from not only Tyra, but also from our base production assets will be used to both support our distribution profile and maintain a conservative balance sheet. And just as a reminder of what that distribution policy is, we are intending to return 50% to 70% of our operating cash flow during 2024 to 2026. If we just turn to look at the longer term for a moment, what we expect to do is continue to support our production levels using our 2P and 2C reserves and resource base as a starting point. And what that will enable us to do with the 213 million barrels that we have across both those categories is support near-term growth, ensure the stability of our medium-term profile, and finally make sure that we have material production levels out to the expiry of the DUC concession in 2042. On the financial side, I'll leave most of that to Jacqueline, our CFO, who will provide more detail in the following section. But I just wanted to emphasise two points. One, our recent strong performance and the actions taken to reset the capital structure position us extremely well for the future. So in summary, it's been a strong quarter with delivery of activities that support our long-term performance. And if we turn over to the next slide, we can talk about the capital structure in a little more detail. So it was in our Q4 2023 results that we presented in February of this year that we set out the fact that we were intending to restructure our capital position. And there were really three objectives for that. One was to optimize our access to secure debt capacity. The second was to make sure that any distribution restrictions that we had within our balance sheet were consistent with our cash generation outlook. And number three was to make sure that we were able to maintain a conservative balance sheet on a through cycle basis. And during Q2, we completed the two material steps that were needed to deliver this reset. Firstly, we successfully refinanced our RBL facility. As I think most people are aware, it is a relatively challenging backdrop for bank lending to the oil and gas space. So the fact that we were able to deliver a $300 million increase in our facility size to $1.4 billion really does show the strong support from our lender group. We also deferred the amortizations from the second half of this year into 2027, and we extended the maturity to 2029. And all of that makes sure that the RBL will remain an important instrument that will underpin our capital structure for the rest of this decade. Secondly, we issued BNOR 16. That's a new $300 million senior unsecured note and it will mature in 2029. The proceeds from that issue were used to repay BNOR 14 and will support our capital structure going forward. Just to spend one moment on BNOR 14, the repayment of that bond was important because it enabled us to remove the link between historic net profit and distributions in our capital structure. That's something that would have restricted our ability to deliver our stated distribution policy. And I'm happy to say that with BNOR 16, the new bond, the distribution covenants are consistent with our capital returns policy. Firstly, the Tyra completion test must be met, and then Bluenord is required only to maintain a minimum level of liquidity of $100 million. And that is in line with the distribution profiles that we have published and the estimates that we have given around that. So, in summary, once Tyra is at plateau, we intend to commence our program of material capital returns imminently. And then if I turn to the next page to walk through in more detail what that distribution profile looks like. So taking one step back, the cash flow that we generate, and particularly post-Tyra, will be used to support all of our structures. As I mentioned on the previous slide, the capital structure reset was important because it enabled us to deliver our commitment to shareholder returns. And that means that from 2024 to 2026, we intend to return 50% to 70% of our operational cash flow. Beyond 2026, we still expect to have a distribution profile and we'll manage our business in a way that is consistent with our desire to maintain meaningful returns. That means that we'll make all future investment and capital structure decisions accordingly. What that also means in summary is that the distribution policy that we've announced will result in the return of a substantial portion of our current equity value over the next two and a half years. If we turn to look at just the bottom part of that slide, in terms of timing, we've already delivered a number of the important steps that were required prior to commencing distributions. The key item remaining is meeting the TIRA completion test. And once that's achieved, which we expect to be in line with when TIRA reaches maximum technical capacity and therefore plateau production, we'll commence our distributions shortly thereafter. Now, before I move on to the operations section, I'd like to introduce you to our new COO, Miriam. Miriam took over from Marianne Aida during the second quarter of this year. And firstly, I'd like to thank Marianne for her strong contribution to the development of BlueNord since 2022. But in Miriam, we have a very capable replacement. So Miriam has worked with these assets from significantly before they were part of BlueNord, as she was with Shell prior to our acquisition in 2019. She's also been our DUC asset manager since 2021, so has a lot of experience with our asset base. And then finally, I'll just say that the new structure that we have reflects our underlying business, as Tyra transitions from the project phase to the production phase. So thank you very much, and I'll hand over to Miriam. Thank you.

Thank you, Ewan. I'll just... So I will now take you through the status of the TIRA redevelopment project and I'll present how we plan to deliver on TIRA in 2024. Then I will present to you how we have achieved the strong Q2 based asset production that Jon just told you about. And then I will present the outlook and the planned activities for the base assets for the rest of 2024. But first, let me just emphasize the importance of TIRA. We all know that Tyre is strategically important not only to Blue Nord but also to Denmark, as Tyre will provide necessary gas to Denmark and Europe for the coming years. The project will unlock significant volumes from the Tyre field and the satellite fields with the new and modern facilities in place. The increased production from Tyre means that the CO2 intensity from the Tyre facility will reduce with 30% and that will reduce also our unit operating cost to less than $13 per BUE. Now let us look at the status and outlook for 2024 for the Tyre redevelopment project. So, as we presented in Q1, Tire was restarted 21st of March 2024. Then on 18th of April, while we were ramping up export of Herald Gas, an incident occurred where the transformer providing power for the IP compressor was short-circuited. Last week, as communicated in the Remit Notice 8th of July, there was an incident offshore impacting the LP transformer. The operator Total Energies is working hard on three things. Firstly, to fix the underlying startup issues and repair of the damaged transformers. Secondly, to mature various temporary solutions for partial production. And thirdly, to continue the commissioning in parallel with this work. And with these three work streams, the current outlook is that we have the schedule of the repair of the transformers is in line with petro-production still in Q4. And further, there's a plan to resume Harold gas production in July by going directly to one of the export compressors. And finally, commissioning is moving ahead at a good pace, and we have Tyre West ready for start-up with all wells unplugged, and more than 50% of Tyre East wells are unplugged. And we will be able then to have a faster ramp-up. And I can also share with you that the planned work that was done on the Nogat line carried out for approximately one week in June and required that production from base assets went over Tyre to Denmark went very well. And this demonstrated the export capability of the Tyre facilities. And now let us look at how we plan to reach plateau production in Q4 2024 based on the recent progress and the plans just presented here. So the path to plateau production for Tyra is driven mainly by three things. Firstly, temporary production from Herald starting in July and other temporary solutions still being matured. Then that the startup issues are being fixed. And then thirdly, that we have continued commissioning allowing for faster ramp up. So Q3 will be restart of Tyra and Q4 will be ramp up to plateau production. And based on the recent performance and information that I just shared with you, we believe, and this is in line with the remit just published by the operator, that placebo production end of Q4 is achievable and we will keep the guidance unchanged for Tyra. I will now present to you how we have achieved the strong Q2 base assets production, which is production from the DAN, Half-DAN and GORM hubs, and then present the outlook and planned activities for the base assets for the rest of 2024. So let us first look at the production from the base assets for this quarter and the outlook for the next two quarters. So today I'm happy to share that the production in this quarter 2 has been higher than the production from quarter 1. And with a production of 24.5 MbE per day NBN, we are well within our guidance of 23 to 26 MbE per day NBN. The reason for this good performance is mainly due to three things. Firstly, the infill well Hafsan Tor North East, the HbA27b well, is now on full production and is producing in line with expectation. Secondly, we have increased production from the Herald observation work that commenced early 2024. And thirdly, the Skrull gas acceleration pilot now shows early signs of increased production. So based on this recent strong performance and the current understanding of the base asset and also the continued focus from the operator on the operational efficiency, I am pleased to share that our guidance for the base asset is unchanged with a range between 23 and 25 MBUE per day net to BlueNord for the rest of the year. So in summary, I want to highlight that the production from base assets is strong and within our guidance, and we have been within or above guidance for the last 14 quarters. Now let's look at the rig activities for the DOC fields to support the continued strong production. We have seen a very positive impact on production optimization work so far on Haftar Northeast and on Dan. We used a noble reed to rig for the optimization that we refer to as ROM. We are currently working on half-dand where we have planned 28 different well interventions which will contribute with additional production this year and subsequent years. And you will be very pleased to hear that we just extended the jack-up rig shelf-drilling winner for 17 months from March 2025 with an option to extend further with 2 times 7 months. The rig will be used for both drilling up infill wells and to carry out workovers. The rig is currently working on our next opportunity. As we announced on the 17th of June, we have just spotted the Herald East Middle Jurassic This is a well with large subsurface uncertainty. However, in a success case, this may increase reserves by up to 8 million BUE and also give a significant gas production contribution from the Herald Field producing into Tyre. The well is expected to be online in Q4 2024. And I'm also very happy to announce that we have just taken FID on the first of two Haftan EcoFish wells. And the plan is to take FID on the second well later this summer. The first well, HDA 35, will be drilled immediately after the Havl East Mid Jurassic well. So overall, activities have picked up significantly and we will continue to mature opportunities for the two rigs to support the production. So bottom line, we see strong production and a very good outlook for future years. And I will now hand over to Catherine, Chief Corporate Affairs Officer, and she will take you through the long-term outlook for BlueNord.

Thank you, Miriam, and good morning to everyone. While one of our key objectives is to contribute to energy security to Europe, we're also dedicated to initiatives which reduce emissions and to exploring CCS. And this quarter, we have several exciting updates for all three. As mentioned by Joen and Miriam, we have spudded the Hemjey well, and we have taken FID on another well, all which will secure important gas volumes in the short and medium term. For CCS, we have reached an important milestone in carbon cuts, which was successfully awarded an onshore storage license in June by the Danish Energy Agency. For this project, which is named Project Ruby, the vision is to store about 1 million tonnes of CO2 per year from 2030. Our ownership in carbon cuts is not only fit for purpose for a company our size, but it also represents a true emissions reducing solution, which doesn't compromise the security of supply. And finally, for this quarter, as part of our initiative to continuously reduce emissions in the DUC, we have started testing out something which is called sustainable aviation fuel on our helicopter flights between Esbjerg and the Danish North Sea. This is the first time this is being done in the Danish North Sea. And with the new fuel, we expect to see about 25 reduction in emissions related to this type of transportation. And then moving to the long term plan, which is aimed at maximising the economic recovery from the DUC. We do this through our short and medium term opportunities, simply divided into two categories, the infill well programme and the development projects. We have already one infill well on stream, which overnight added 3,000 barrels per day to the production. In June, we sputtered the HemJ well, and today we announced that a third well has been sanctioned. The infill well program is a really efficient and low-cost way of adding volume in a paced manner. All the wells are drilled by the Jacob Rigg Shelf Drilling Winner, and as Miriam mentioned, we're very pleased to have extended this contract by 17 months. It shows a confidence in the program and a willingness from the BUC partners to invest in our asset base. It's also worth mentioning that now that Tyra has been brought on stream, that has also unlocked several new infill opportunities in the Tyra Hub, with six wells under maturation. The other category is the three development projects, which you can see on the right hand side. Valdemarbo South, Adda and Halfton North. The two first ones are gas weighted, while Halfton North is mainly oil. All three projects come with robust IRRs and production from Adda and Valdemarbo South can also be tied back to Tyra 2, which is an excellent way of utilizing the new facility on Tyra and backfill its process capacity. And that takes me to this page which shows the positive impact of the organic opportunities I just went through. The long-term plan is a plan we have together with the DUC partners and it ensures a high level of production throughout this decade. As you can see, we expect to be above 55,000 barrels a day on average next year and remain at a high level five years later in 2030. The dark blue area, it represents the current base production and it shows how low the decline has been year on year. The steep step change of Tyra is seen in turquoise, and the light green is what we refer to as in-plan projects, meaning the infill wells and the development projects I just went through. So by only sticking to this current plan, we are well placed to keep production high, support future cash flow for the company, and move barrels from 2C resources to 2P reserves. Perhaps even more interestingly is the light grey shaded area at the top. These are additional opportunities, like the Tyra infill wells, which are currently out of plan, but which we will progress in order to move them into the plan. And if that is successful, we're in a position to exit this decade above 55,000 barrels per day. So summarized, this production profile shows that Blue Nord, without needing to seek for inorganic growth, is able to sustain a strong production and cash flow over time. And with that, I will say thank you for listening and pass over the word to our CFO, Jacqueline, who will take you through the Q2 financials.

Thank you, Kathleen. So you've heard the highlights for the quarter from Ewen, and then more detail on how the base business continues to deliver from Miriam, as well as the plan as we near Tyre producing again and reaching Plateau. We have also made progress on infill drilling and maturing infill well and development projects that Kathleen highlighted. With that in mind, I will now take you through the financial results that are the outcome of the operational performance that you've just heard, as well as the changes in our capital structure, which sets BlueNord up for the future. And then finally, an update on our hedging for the quarter. 2024 underlying financial performance continues in the second quarter on a relatively stable path. as Miriam highlighted earlier, underlying asset operating performance continues to be strong and the commodity price environment has been relatively stable when taken on average for the second quarter. However, as expected, the effective gas price was lower by 26%, and this was driven by higher value hedges rolling off in the first quarter, and the effective gas price now reflects more closely the current market pricing. Offsetting this, we saw oil liftings up for this quarter, unwinding the prior quarter's underlift, as well as gas volumes being slightly up. Revenue therefore for the second quarter was $171 million compared with $169 million last quarter and $339 million year to date. The message on operating costs is consistent with the inclusion of activities related to well recovery and optimization. This continues to support the strong base production performance. there was a slight increase due to phasing of some study expenses and a one-off penalty associated with gas nominations. But OPEX for the quarter is $75 million and OPEX per BOE remains at $33 per BOE. As a result, the overall contribution margin continues to be positive but this is mainly affected by a drop in effective gas prices when compared to the previous quarter. Reported EBITDA is $72 million in this quarter compared with $88 million in the last quarter and $160 million year to date. So turning to the income statement, you can see the full earnings position where I will clarify a few points below EBITDA. So just as in the first quarter, net financial items are impacted by the non-cash fair value movement of the embedded derivative in the BNOR15 convertible bond. This quarter was a $10 million gain compared with a $17 million loss in Q1. In addition, there is a $6 million non-cash present value adjustment for the refinanced RBL, which is presented on the balance sheet at amortised cost. We also note that tax expense continues to fluctuate quarter to quarter. And in this quarter, it is mainly driven by a foreign exchange movement on the tax loss asset. This is denominated in Danish kroner and must be revalued each period. so the underlying current tax expense is as expected. Overall, we ended the quarter with a net loss of $1 million. If we now consider the balance sheet, the main item to highlight is also linked to tax. The balance sheet is relatively stable and there are not many significant variances when comparing to the last quarter. PP&E continues to increase as we continue to work towards completion on Tyra and receivables are up due to the higher oil liftings mentioned earlier, which occurred late in the quarter and thus cash receipt is due in July. But finally, taxes payable. This is moved by an amount and this includes a final update for the 2023 tax return. This was submitted in May and we've also updated the estimate for tax payable in 2024. Of the total of $54 million outstanding, approximately $45 million is an actual cash tax. And the decrease since the last quarter is linked to the finalisation of the tax return. And this reduction has gone against deferred tax. So there continues to be no regular Chapter 3 taxes payable in the current year. Now, if we turn to cash. You can see we report an operating cash flow before tax of $57 million this quarter and $146 million year to date. Operating cash flow is affected this quarter by the timing of cash receipts. This is on the oil volumes lifted in June, which will be received in July, as reflected in the working capital this quarter of $17 million. After taxes paid of $7 million and finance costs of $11 million, the remaining spend continues to be largely on the Tyra redevelopment project of $50 million. We also saw the start of drilling the Hemjay well, as well as some other minor projects and completion of the P&A work on the Dan Echo wells. Overall, we finished the quarter with a cash outflow of $22 million. The liquidity position remains robust. This is $136 million of cash available and $270 million of undrawn RBL facility. This is following the completion of the RBL refinancing during the quarter. This maintains our fully funded position with a closing available liquidity of $406 million. This liquidity position does not include the net proceeds from the newly issued BNOR16 bond. And if we add that, we have a position of $506 million. So talking more about cash leads us on to the capital structure, where I will discuss in more detail the reset of the capital structure, which we have just completed, and adding a little bit more to what Ewan highlighted earlier. So I'm pleased to say that this quarter we have been able to complete the work on resetting the capital structure to optimise our access to capital and support the business strategy. We completed the refinancing of the RBL in June with a facility of $1.4 billion in place, which is upsized by $300 million with amortisation to start in early 2027 and maturity extended to December 2029. We also placed a new bond in the market for $300 million, which settled on the 2nd of July and is not reflected in these Q2 results. But we show the capital structure here, including the new bond issue and the repayment of BNOR14. We have managed to deliver this while still ensuring BlueNord's business objectives can be achieved. In particular, access to sufficient liquidity, a diverse capital structure, and ability to pay distributions in line with our cash generation outlook. Our net debt at the end of the quarter and after the new bond issue is $1.2 billion compared with $1.1 billion at the end of Q1. With the capital structure in place, we are ready for the first distribution, which will be when Tyra ramp up is achieved. So a final point to highlight is the commodity price environment. And we continue to use hedging as a way to provide visibility over future cash flows, and we add volumes when it makes sense to do so. This quarter, we added hedges mainly in gas, focusing on summer 2025 and winter 2025-26 seasons. The average hedged oil price in the outlook to the end of 2026 is in the low 70s US dollar per barrel, For gas hedging, this period, we have sought to take out more hedging to secure some base pricing over 30 euros per megawatt hour. And for the outlook to summer 2026, pricing remains generally above that level. This slide shows our latest position as of today, and we will continue to take advantage of the market and add hedges when it looks attractive to do so and within our policy framework. So aligned with our latest production guidance, we are hedged in 2024 approximately 50% on oil and 30% on gas when including Tyra volumes. So this hedging approach continues to support our balance sheet and capital structure and helps to bring a level of certainty over our funding position. So in summary, the first half of 2024 reflects a consistent and stable underlying asset base that supports our balance sheet. We continue to look forward to a step change in the business with Tyra volumes increasing as 2024 progresses. This is underpinned by a robust capital structure that is now reset. And we're ready for the step change as we look forward to our first distribution to shareholders once Tyra is at plateau. And with that, I will hand back to Euan for closing remarks.

Thank you, Jacqueline. Before we hand over to Q&A, I really just want to leave you with one very simple message. So 2024 for Blue Nord has been all about a year of transformation. We've invested over a billion dollars to more than double our production capacity. And as a result, we're very much shifting from the development phase to the stage where we're able to deliver value for all of our stakeholders. And what that means, particularly from an equity perspective, is that we expect, once Tyra is at plateau production, to start the material return of capital. And all this means, in practice, that by the end of the year, we will also be sitting with a portfolio that is producing over 50,000 barrels a day. And with that, I'd like to thank you for joining this morning. We'll pause briefly to wait for any additional Q&A to be submitted, and then we'll come back to answer the questions. Thank you.

Thank you. First question. You have in the guidance of production some substantial volumes from Tyra in Q3 and especially in Q4. This means that the temporary solution is important. What are the risks that there will not be a temporary solution and only a permanent solution?

So what we have included is a guidance that's in line with the operator's current plan and that has temporary solutions in quarter three. But it also is in line with the fact that we can now ramp up quicker in quarter four and that will lead us to a faster getting to the plateau production. Thank you.

How does new activities impact 2024 CAPEX guidance? How much CAPEX will be required to meet the production profile showed on page 18?

So the activities that we've announced, including the FID of an infill weld, that was all in the plan already. So what we've guided on in 2024 hasn't changed in terms of the activities. So that CAPEX stays the same for 24. We haven't guided beyond 2024 at this stage, but as we have outlined previously, and we include in our outlook, we do expect our projects in the future, so what's within that plan, are in the mid-teens. So 13 to 15 per BOE is the range for CAPEX.

Assuming that Tyrarampa proceeds according to current plan, when do you expect to announce dividends?

So based on the operator's guidance, which is that Tyra will be at Plateau production by the 30th of November, we would expect to meet the Tyra completion test before the end of the year and consequently announce the first dividend at the same time.

How similar are the two gas compressors and are they delivered by the same supplier? What I'm wondering about is, was the issue on the second gas compressor expected following the issue on the first one? Any color here would be helpful. Thank you.

So the startup issues are related to the transformers and not the compressors and they are similar and they come from the same supplier. And Total Energies didn't think that this would happen again. But the fact that it has happened has led them to now know where to look closer to where the issue is with the transformers.

Can you give some color on the amortization profile on the refinanced RBL?

So amortization starts in the early part of 2027 and then it has a fairly even profile, I guess, through to December 2029 for amortization.

Thank you. On the full year production, do you still expect the production to average approximately 35,000 barrels per day?

Yes, we do.

On the first half done ECOFISK well that was sanctioned during the quarter. Can you provide more specifics on exactly when in Q4 you expect volumes?

So right now it looks like that we can do the final completion in late Q4. So it will be very late in December or in January that we expect the volumes.

Regarding the Tyra infill wells, you currently guide on six wells that are being matured. Can you provide an estimate on how many infill wells you have identified at Tyra and the potential volume contributions from both the wells that are being matured and the additional potential wells?

I think we will leave that for when we get closer to maturing the wells.

I think what we can say is that we have a portfolio of opportunities with Tyra and I think as you go through the life of Tyra, given you've just spent over a billion dollars developing some new facilities, it will make sense to maximise the contribution that we are having from those facilities and obviously drilling infill wells is one of the ways that we can do that. So that maturation will continue through time.

Lastly, on the HemJ well, if the well proves to be a success, when specifically in Q4 can we expect first volumes?

We don't have the specific date right now. It depends on how long the completion takes. This is a high pressure well, but we expect it to be in Q4.

Can you please elaborate what the one-off penalty on gas nominations are?

This links to the nomination process and the expectations on what our gas volumes would be. And that had included a component of Tyra gas. Of course, we then encountered issues with Tyra, which meant that production did not occur. But that has obviously been updated then in our nominations going forward as we have a four month forward gas nomination process.

We understood that the repair work of the IP compressor is in line with the Plateau production in Q4 2024. What about the low pressure compressor? Could you give us more color on what happened here and how long it will take to repair?

As we understand it, the IP transformer that they're repairing right now is unscheduled to be repaired by, so it will be offshore in Q3. And we also understand that now what happened is similar for this transformer and for the LP transformer, so they know how to fix it. And so that will take shorter time than the IP transformer.

I think the main point here is that both of the repairs to the IP and the LP compressor are consistent with plateau production in Q4. So it's not just the IP compressor, it's both. The repair to both and having the permanent solution in place is consistent with Q4 and the specific date that Total has communicated is the 30th of November.

Was it a similar issue that occurred on the LP compressor as on the IP compressor? How many compressors of significance are on the Tyra field? What are the risks that other compressors could experience similar issues with their transformers?

So for this, it's the LP and IP transformers that was impacted, and we don't have more than those two on the facility.

Thank you. That concludes the Q&A session.

There was, I think, one more final question, which was, do we still expect to pay out the market cap to shareholders in the forms of dividends and buybacks before the end of 2026? And the very simple answer to that question is yes. The majority of our dividend profile comes in the first 24 to, say, 30 months. So having a short delay to when we start paying that out doesn't change the ultimate that we will pay out. And fundamentally, a big part of that is driven by the monetization of the tax losses that we have and we expected those to be used up in 2026 anyway. So yes.

All right. I think that concludes the Q&A session. Thank you.