Aker BP — Interim / Quarterly Report 2015

Nov 4, 2015

DET NORSKE Highlights

Production

Total production of 62.8 mboepd in Q3 2015

Finance

• Q3 EBITDA USD 225 million, EPS -0.82 (USD)
• USD 1.7 billion in cash and undrawn debt facilities

Development projects

• Ivar Aasen development on schedule
• Johan Sverdrup PDO approved, CAPEX reductions

Business development

• Acquisition of Svenska Petroleum Exploration AS
• 2015 guidance revised

Financials

Q3 2015

FINANCIALS Statement of income

Income statement (USD mill)	Q3 2015	Q3 2014	YTD 2015
Revenues	281	18	942
Production costs	27	8	117
Other operating expenses	11	1	48
EBITDAX	243	9	777
Exploration expenses	18	72	58
EBITDA	225	(62)	720
Depreciation	130	28	369
Impairment losses	186	-	239
Operating profit/loss (EBIT)	(91)	(90)	112
Net financial items	(16)	(30)	(74)
Profit/loss before taxes	(107)	(121)	38
Tax (+) / Tax income (-)	59	(104)	194
Net profit/loss	(166)	(17)	(156)
EPS (USD)	(0.82)	(0.09)	(0.77)

FINANCIALS Statement of financial position

Assets (USD mill)	30.09.15	30.09.14	Assets (USD mill)	30.09.15	30.09.14
Goodwill	948	50	Equity	495	962
Other intangible assets	898	435	Other provisions for liabilities incl. P&A (long)	555	139
Property, plant and equipment	2 929	728	Deferred tax	1 424	-
Deferred tax asset	-	154	Bonds	511	292
Receivables and other assets	246	234	Bank debt	1 842	405
Calculated tax receivables (short)	8	352	Exploration facility	-	184
Cash and cash equivalents	207	445	Other current liabilities incl. P&A (short)	409	417
Total Assets	5 237	2 398	Total Assets	5 237	2 398

FINANCIALS AND FUNDING Cash flow and liquidity

• Cash flow from operations covered cash flow from investing in the quarter
• Net interest-bearing debt (book value) of USD 2.15 billion
• Cash and undrawn debt facilities of USD 1.74 billion at the end of Q3

FINANCIALS 2015 taxes

Estimated tax payable for 2015 (NOKbn)

• 2015 tax payable was estimated to be NOK 2.2 billion in mid-2015
• Refund for tax year 2014 estimated at NOK 0.2 bn (to be dispersed in Dec. 2015)
• At the current USD/NOK FX rate, the company expects to make no tax payments during the first half of 2016 due to:
• Unrealised losses on foreign exchange
• Sustained low oil prices
• Inclusion of tax losses from Svenska Petroleum AS

Operations

Q3 2015

PRODUCTION Oil and gas production in Q3 2015

Net production (boepd)

Q3 production

• Q3 2015 production of 62.8 mboepd
• Production efficiency was 98.1%, above target
• Realized oil price of USD 52/bbl

Production was positively impacted by

• Bøyla M2 start-up
• Full quarter production from KB3 well
• KA1 well resumed production
• Production guidance
• Revised 2015 guidance of ~62 mboepd
• Preliminary 2016 guidance of 55 60 mboepd

GREATER ALVHEIM AREA Further developing the Alvheim area

New projects in the Alvheim area Alvheim area

• 4 new wells planned to come on stream in 2015
• Bøyla M1 on stream in January
• East Kameleon L4 on stream in April
• Bøyla M2 on stream in August
• Kneler 1 planned to come on stream in November
• Rig tendering process close to completion
• Future infill wells and developments
• BoaKamNorth commenced drilling
• Viper/Kobra development ongoing
• Infill wells to Volund and Boa
• Attic oil
• More discoveries being matured and numerous exploration targets identified

IVAR AASEN (~35%¹ )

Ivar Aasen project on schedule for first oil in 2016

Events in the quarter	Detailed timeline
Production drilling commenced in July 		2012	2013	2014	2015	2016
Pipelines between Edvard Grieg and Ivar Aasen  installed Construction of topside reached 85% completion  Helideck installed on living quarter 	Concept selection FEED studies PDO approval Unitisation Agreement	H1 H2	H1 H2	H1 H2	H1 H2	H1 H2
Key milestones going forward	Construction of jacket Construction of topside Construction of LQ
Topside mechanical complete planned  by Q1-2016 Topside sail-away planned for spring 2016 	Maersk Interceptor to Norway Drilling of geo-pilots Jacket lifted into place
Hook-up and completion planned for  summer and autumn 2016	Drilling of production wells Topside to leave SMOE yard Installation of topside
	Installation of living quarters Hook-up and commissioning Production start-up

IVAR AASEN (~35%¹ )

Topside construction reached 85% completion

Construction progressed well in Q3

• Construction of the topside is about 85% complete
• First sub system handed over for commissioning in September
• Trial fit of the flare lower section took place in September
• Cable pulling and termination are progressing well

Topside on schedule

• Key equipment packages arrived on site as planned
• Mechanical complete scheduled by Q1-2016
• Sail-away scheduled for spring 2016

IVAR AASEN (~35%¹ ) Drilling of production wells

• Initiated drilling of production wells through jacket in mid-July
• Batch set five conductors
• Two producers drilled and completed by mid-October

World class drilling performance

• Rig move and preparations for drilling completed in six days
• Batch setting of five conductors well ahead of plan and budget
• Top drilling and completion performance

Targeting further performance improvements

Meters/dry hole day (ex. core&log) by well²

Total Completion Days²

16/1-D-10 16/1-D-11

Open hole wells between 2002 and 2015 on the NCS, targeting conventional hydrocarbons (wire trapped, single completion string, ex. multilateral)

JOHAN SVERDRUP (11.5733%)

Johan Sverdrup project progressing as planned

PDO approved by MPE in August

• Production start-up: Q4 2019
• Volumes: 1.7-3.0bn boe (~80% from Phase 1)

Cost estimates are coming down

Phase 1 CAPEX reduced from NOK 123 billion (nom.) to NOK 114 billion (nom.) ¹

Operator's Phase 1 indicative FX split on CAPEX

¹ Based on the PDO exchange rate of USD/NOK of 6.0

BUSINESS DEVELOPMENT

Acquisition of Svenska Petroleum Exploration AS

• Cash consideration of USD 75 million
• Increased ownership in attractive assets with resource upside potential
• 13 licenses and 15 employees
• Krafla/Askja (25%), Garantiana (20%), Frigg Gamma Delta (40%) and Fulla/Lille-Frigg (25%) discoveries in the North Sea
• Four exploration licenses in the Norwegian Sea
• Tax effect from fiscal year 2015
• After-tax value of tax loss carry forward of NOK 130 million (end 2014)
• Closing in Q4 2015

Map of assets

BUSINESS DEVELOPMENT Acquisition of Svenska Petroleum Exploration AS

• Krafla/Askja and Garantiana are both being matured for development
• Good fit with existing portfolio as investment decisions will occur after first oil at Ivar Aasen
• Investment decisions expected around 2018
• Majority of CAPEX to be funded by cash flow from Johan Sverdrup
• Further exploration drilling in both areas expected in 2016

Map of North Sea discoveries

EXPLORATION Key focus areas in 2016

Securing new acreage

• 23rd licensing round Prepare upcoming 23rd licensing round Assessing opportunities in the Barents Sea
• Awards in Pre-defined Areas (APA) Applied in 2015 APA with aim to secure additional acreage in core areas

Focus on ILX in core areas in 2016 and onwards

• Working to optimise 2016 exploration drilling schedule
• Rovarkula to be drilled in 2016
• Krafla/Askja and Garantiana areas expected to be further explored in 2016
• Potential Barents Sea drilling

Overview of existing core and exploration areas

Outlook

Q3 2015

OUTLOOK Revised guidance

Item	Actual first 9 months 2015	Previous guidance	Revised guidance
2015 CAPEX	USD 645 million	USD 950 – 1,000 million	USD ~925 million
2015 EXPEX	USD 76 million	USD 115 – 125 million	USD ~95 million
2015 Production cost per boe	USD 6.9 per boe	USD 8 – 10 per boe	USD ~6.5 per boe
2015 production	62.0 mboepd	58 – 63 mboepd	~62 mboepd
2016 production (preliminary)	-	-	55 – 60 mboepd

OUTLOOK Summary and outlook

Development projects

• Ivar Aasen progressing according to plan
• Johan Sverdrup progressing according to schedule, awaiting the outcome of the complaint regarding ownership
• Continue to develop the Alvheim area

Financing

• Available liquidity of USD 1.74 billion
• Secured funding for work programme until first oil at Johan Sverdrup
• Improvement program ongoing
• Realized 2015 savings in excess of the targeted USD 100 million
• Aiming to reduce costs, streamline work processes and improve the way we operate by securing run-rate savings