Aker Bp Asa Ord

With this intro from the sale away of the Fenris jacket and pre-drill module from the Vardal yard a few weeks ago and the subsequent successful offshore installation on the Valhall area, we welcome you to AKBP's second quarter 2024 presentation. It will be given by our CFO, David Turner, and myself, followed by our usual Q&A session. But before that, let me start with the highlights. RKBP achieved excellent operational performance this quarter with high production efficiency. We continued to demonstrate strong cost discipline and maintained our position as a global industry leader in low emissions. I am pleased to report that our projects are progressing well. Fabrication and construction activities are underway at multiple sites in Norway and abroad, with the installation work offshore ramping up as shown in the intro. And the total COPEX estimate for our project portfolio remains unchanged. We maintain a strong financial position supported by robust cash flow from operations. This allows us to invest in our profitable projects while also providing attractive dividends to our shareholders. At Akabipi, we consistently deliver high production from our world-class asset portfolio. In the second quarter, we produced 444,000 barrels of oil equivalents per day, and the production efficiency increased to 95%, which is leading on the NCS, as we remained continually laser-focused on operational performance. Compared to the previous quarter, Alfheim, Skav and Valhalla delivered stable production. At Edvard Gregg, we saw a reduction due to a combination of natural decline, plant maintenance and a shutdown linked to the startup of Hans. At Johan Svardrup, it's a pleasure to see just how it keeps on performing. This giant field with almost 3 billion barrels in initial reserves was originally designed for a gross oil capacity of 660,000 barrels per day. Last year, this was increased to 755,000 barrels. If we also include natural gas, the field has a capacity to deliver close to 800,000 barrels of oil equivalents per day. And the performance has been nothing but remarkable, with high production efficiency, very low production cost of around $2 per barrel, and with maybe the lowest emission intensity in the industry of less than one kilogram of CO2 per barrel. In the second quarter, AKBP's share of production from Johan Svadrup increased to 241,000 barrels of oil equivalents per day. As we have previously discussed, water production has been increasing in some of the wells over the last year. This is as expected and something that the operator is managing, but continuously optimizing production on a well-by-well basis. We are also adding new wells, with four added in the first half of 2024, and a fifth well have been started up now in July. Another five wells are planned for the second half. As of today, Johan Sladrup continues to produce at the elevated plateau, and the ongoing drilling activity will help to maintain this level until late 2024 or early 2025. The next step is to drill additional laterals from existing wellbores to increase reservoir exposure and mitigate water production. We are also approaching a concept select for phase three. This is a project that will involve subsea wells tied back to the Johan Sverdrup Field Centre, with production start up targeted from late 27. At AKBP, we believe that maintaining low cost is crucial for gaining a competitive edge in the oil and gas industry. And we systematically work towards this goal. And I'm very pleased with the progress we've made. Our production cost for the quarter was $6.4 per barrel, well within our full year guidance of $7. This quarter, the production cost was positively impacted by high production volumes, limited maintenance activities, and favorable currency effect, but yet it marks a very strong start of 2024. When comparing our production cost to those of the relevant industry peers, Akka BP maintains a strong competitive position. As illustrated in the chart to the right, data from Woodback show that ArcaBP has the lowest production cost among a group of 20 comparable companies. ArcaBP's greenhouse gas emissions were below 3 kg of CO2 equivalents per barrel in the second quarter, marking a significant improvement over the last few years. This progress is driven by enhanced energy efficiency and an increased share of production from fields powered from shore. This outstanding performance cement our position as a global industry leader in greenhouse gas emissions intensity, a trend consistently demonstrated in the recent quarters. Among the approximately 300 largest upstream oil and gas companies worldwide, Akka BP stands out as one of the best in emission intensity, as shown in this chart. This position gives us an excellent starting point for further reductions. We are committed to continually reducing emissions from our operations, which is a crucial part of our strategy to achieve net zero emissions across operations by 2030. Beyond that point, we plan to offset the remaining emissions through nature-based carbon solutions.

The ASHA template installation is in the books, making a huge milestone in the Yggdrasil project. It's our first offshore construction on Yggdrasil, and we nailed it.

We are well underway with the execution of our large project portfolio, which will unlock nearly 800 million barrels of oil equivalent and grow ArcaBP's production to over 500,000 barrels per day in 2028. These projects have robust economics with break-even oil prices as low as $35 to $40 per barrel and a rapid payback period of one to two years at an oil price of $65 per barrel. The activity has now ramped up to full speed across the project portfolio, and fabrication and construction activities are progressing according to plan at all sites. We have also started offshore installation for several projects. The Fenris jacket featured in today's opening sequence is one example. With this jacket in place, we are now ready to start the drilling campaign at Fenris. Another example is the SKAV satellite project, where all three subsea templates are now installed on the seabed. As we saw in the last video, the first five subsea templates have now been installed in the Yggdrasil area. We have also completed one project in the quarter, as Hans was brought on stream back in April. In parallel with the construction and installation activity, we are also looking for further upsides. One very good example is the drilling of the Frigg Gamma Delta geopilot in the Yggdrasil area. Take a look at this.