Aker BP

Investor Presentation • Oct 22, 2019

Third quarter 2019

Aker BP ASA

22 October 2019

Disclaimer

This Document includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Document are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker BP ASA's lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker BP ASA's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Document. Although Aker BP ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. Aker BP ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker BP ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

AKER BP Third quarter 2019 highlights

Field developments on track

• Johan Sverdrup on stream 5 October
• Ærfugl, Valhall Flank West and Skogul on track

Strong operational performance

• High production efficiency
• Delayed stimulation program at Valhall

Exploration success

• Two discoveries in the Skarv area
• Frosk test producer on stream

Key figures		Q3-19	Q2-19	Q3-18*
Production	mboepd	146.1	127.3	150.6
Sales	mboepd	143.3	140.7	148.3
Realized liquids price	USD/bbl	62.0	69.3	74.6
Realized gas price	USD/scm	0.16	0.16	0.30
Total income	USDm	723	785	966
EBITDA	USDm	480	522	698
Operating profit	USDm	196	354	509
Net profit (loss)	USDm	(43)	62	116
Effective tax rate	USDm	130 %	77 %	74 %
EPS	USD	(0.12)	0.17	0.32
DPS	USD	0.52	0.52	0.31

AKER BP The Johan Sverdrup achievement

Below budget – ahead of schedule

Operator: Main contractors phase 1:

Production overview OPERATIONAL REVIEW

Net production, mboepd

Production efficiency

Alvheim OPERATIONAL REVIEW

• Frosk test production started
• Skogul on track for first oil in Q1-2020
• Maturing new infill targets
• Swift action to repair Mid-Water Arch

OPERATIONAL REVIEW Valhall

Preparing for new growth

• Valhall Flank West approaching first oil
• Drilling campaign ongoing at Valhall WP
• Stimulation program slightly behind plan

OPERATIONAL REVIEW Ivar Aasen

• Strong operational performance
• New wells on stream
• Continued digital innovation
• Follow-up and monitoring of discharge permits

OPERATIONAL REVIEW Skarv

• Strong operational performance
• Ærfugl development on track
• Adding resources through exploration

OPERATIONAL REVIEW Exploration success in the Skarv area

OPERATIONAL REVIEW Ula

• Drilling campaign has started
• Tambar multi-phase pump a digital success story
• Progressing long-term area strategy

Using data to create more value IMPROVEMENT

Examples

	Better production performance assessment
 Best Day  performance	Challenge: repeat peak performance every day
	Solution: use advanced visualization and analytics to explain differences in performance
	 Production engineers at Alvheim and Valhall now have better insight on how to repeat best day performance

Reduced CO2 emissions intensity at Skarv

• Challenge: continue to reduce emissions and cost
• Solution: Reduced export pressure and reduced energy use in the FPSO gas cleaning process
• Reduced CO2 emissions intensity of approx. 0.4 kg/boe with associated annual cost savings of NOK 11 million

Energy

optimisation

OPERATIONAL REVIEW NOAKA

Significant resource base

• Recoverable resources ~700 mmboe1) (average WI >60%)
• Planning for Liatårnet appraisal in H1 2020

New infrastructure is needed

• Many accumulations with various hydrocarbon types
• Further exploration potential

Aker BP favours a central processing hub (PQ)

• Highest value creation and resource utilisation
• Capacity for future discoveries

EXPLORATION 2019 exploration program

License	Prospect	Operator	Aker BP share	Est. spud	Pre-drill mmboe	Status
PL869	Froskelår Main	Aker BP	60 %	Q1	45 - 153	Discovery 60-130 mmboe
PL857	Gjøkåsen	Equinor	20 %	Q1	26 - 1427	Dry
PL033	Hod Deep West	Aker BP	90 %	Q1	2 - 22	Dry
PL869	Froskelår NE	Aker BP	60 %	Q2	7 23 -	Discovery 2-10 mmboe
PL916	JK	Aker BP	40 %	Q2	100 - 420	Dry
PL814	Freke-Garm	Aker BP	40 %	Q2	16 81 -	Dry
PL777	Hornet	Aker BP	40 %	Q2	14 137 -	Dry
PL502	Klaff	Equinor	22 %	Q2	50 372 -	Non-commercial discovery
PL869	Rumpetroll	Aker BP	60 %	Q2	45 148 -	Non-commercial discovery
PL442	Liatårnet	Aker BP	90 %	Q2	39 331 -	Discovery 80-200 mmboe
PL762	Vågar	Aker BP	20 %	Q3	63 130 -	Dry
PL986	Nipa	Aker BP	30 %	Q3	35 115 -	Dry
PL942	Ørn	Equinor	30 %	Q3	8 40 -	Discovery 50-88 mmboe
PL838	Shrek	PGNIG	30 %	Q3	10 22 -	Discovery 19-38 mmboe
PL782S	Busta	Conoco	20 %	Q3	54 199 -	Currently drilling
PL019C	Kark	Aker BP	60 %	Q3	15 48 -	Currently drilling
PL1008	Nidhogg	Aker BP	60 %	Q4	26 70 -

EXPLORATION A leading explorer on the NCS

Net discovered since 2016 by company (mmboe)

Source: Norwegian Petroleum Directorate (NPD), Aker BP analysis (Petoro not included)

Financial review

FINANCIAL REVIEW Oil and gas sales

Income statement FINANCIAL REVIEW

USD million	Q3 2019	Q2 2019	Q3 2018*
Total operating income	723	785	966
Production costs	167	198	170
Other operating expenses	6	4	4
EBITDAX	550	583	791
Exploration expenses	70	60	94
EBITDA	480	522	698
Depreciation	206	168	189
Impairment losses	78	-	-
Operating profit (EBIT)	196	354	509
Net financial items	(53)	(86)	(58)
Profit/loss before taxes	143	268	451
Tax (+) / Tax income (-)	186	206	335
Net profit/loss	(43)	62	116
EPS (USD)	(0.12)	0.17	0.32

FINANCIAL REVIEW Reconciliation of tax expense

Effective tax for Q3-2019 (USD million)

"Other items" vs. forex changes, quarterly since 2016

Statement of financial position FINANCIAL REVIEW

USD million

Assets	30.09.19	30.06.19	31.12.18*	Equity and liabilities	30.09.19	30.06.19	31.12.18*
Goodwill	1,713	1,791	1,860	Equity	2,444	2,664	2,977
Other intangible assets	2,571	2,522	2,433	Other provisions for liabilities incl. P&A (long)	2,543	2,560	2,581
Property, plant and equipment	6,614	6,300	5,746	Deferred tax	2,279	1,991	1,753
Right-of-use asset	215	239		Bonds and bank debt	2,940	2,635	2,018
Receivables and other assets	609	522	614	Lease debt	341	375
Calculated tax receivables	-	17	11	Other current liabilities incl. P&A	985	829	828
Cash and cash equivalents	5	102	45	Tax payable	195	439	552
Total Assets	11,727	11,493	10,709	Total Equity and liabilities	11,727	11,493	10,709

Cash flow – third quarter 2019 FINANCIAL REVIEW

USD million

Tax payments FINANCIAL REVIEW

USD million

The instalments for 2019 are converted from NOK to USD using an exchange rate of 8.5. The amounts payable in 2020 will be adjusted based on actual income for FY2019.

FINANCIAL REVIEW Guidance summary

	Actual per 2019-9M	Updated 2019 guidance1)
Production2)	144 mboepd	~155 mboepd (previous 155-160 mboepd)
Capex3)	USD 1161 million	USD 1.6-1.7 billion
Exploration spend	USD 422 million	USD ~550 million
Abandonment spend	USD 99 million	USD ~100 million
Production cost per boe4)	USD 13.5	USD ~12.5
Dividends	USD 562.5 million	USD 750 million

²³ 1) 2019 guidance is based on a USDNOK assumption of 8.5 3) Excl. capitalized interest, incl. payments on lease debt 4) Per produced boe. Excl. costs related to Alvheim MWA pending insurance recovery

AKER BP Priorities ahead

Safe and efficient operations

Excellent project execution

Keep momentum on improvement agenda

Leverage technology to drive value creation

Start up of new fields and wells

Mature discoveries

Grow

Improve

Execute

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