CREATING THE LEADING INDEPENDENT OFFSHORE E&P COMPANY
10 June 2016
POINT OF DEPARTURE Growth opportunity stemming from long-term collaboration
Aker has over the last decades built a unique oil service hub and world class supply chain capabilities
- World class service capacity from Aker companies
- Deep sector knowledge and track record of long-term value creation
- Proven M&A capabilities
- Strong industry relationships
Det norske has proven to be one of the most successful E&P independents through innovation, consistent performance and M&A
- Solid performance through hands-on asset focus and continuous improvement
- Ability to turn around even top quartile assets
- Flexible and fast moving organization
- Independent-like business practices
Creating the leading offshore independent E&P company
AKER BP ASA
DETNOR and BP Norge will merge to create the leading independent offshore E&P company
Ownership structure post transaction
Merger on equal terms, adjusted for quality of assets
Transaction details
- 1. Det norske acquires BP Norge AS by issuance of 135.1 million shares based on NOK 80 per share
- 13 licenses incl. Valhall (~36%) Hod (~38%), Ula (80%), Tambar (55%) and Skarv (~24%)
- Tax loss carry forward USD 267 million (nominal after-tax value)
- Net cash position of USD 178 million
- 2. Aker ASA acquires 33.8 million shares in Aker BP ASA from BP for a cash consideration of USD 318 million
- Based on NOK 80 per share
- Closing expected in the third quarter 2016
- Transaction subject to EGM approval and regulatory approval
Company details
- Company to change name to «Aker BP ASA»
- Aker BP to be headquartered at Fornebuporten, Bærum
AKER BP ASA Solid footprint covering entire NCS
Skarv Solid base performance and upside potential
Alvheim High production efficiency and low operating cost
Ivar Aasen On track to first oil Q4-16
Johan Sverdrup
World class development with break even prices below 30 USD/bbl
Ula/Tambar Late life production with significant upside potential
Valhall/Hod
Production from giant chalk reservoir with potential production in ~70 years
AKER BP ASA Significant production and cash flow
Unique portfolio with potential to reach production above ~250 mboepd from 2023 Diversified production • 78% liquids and 22% gas (2015 production) Organic growth opportunities • New developments in areas with proven potential • IOR potential in producing assets • Near field and frontier exploration Growth and de-risking of portfolio Illustrative production potential*, mboepd 0 50 100 150 200 250 300 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Reserves** Resources*** Reserves + resources 723 mmboe 500 mmboe 1.23 + = bn boe BP Norge AS Det norske oljeselskap ASA
*Sanctioned and non-sanctioned projects
** Based on Det norske end of 2015 ASR (498 mmboe) and NPD's reserves for BP Norge AS (225 mmboe) end 2015
*** Based on Det norske evaluation, excluding immature options and identified upsides
AKER BP ASA Attractive growth potential on the NCS
Top future NCS producers** (excl. Statoil and Petoro)
AKER BP ASA Financially robust
- Strengthened balance sheet from new equity and increased debt capacity
- Increased cash flow
- Significant dividend capacity
- Credit accretive transaction
- Market value of equity to enterprise value increase from ~45% to ~60%
- About 35% reduction in net interest-bearing debt per boe of reserves
Illustrative capital structure*, USD bn
AKER BP ASA Bridging the gap to 2020
Det norske "as-is"
- Funding for current work program and select organic growth projects
- Further growth requires additional capital
Aker BP ASA
- Significant production and cash flow provide optionality:
- Organic and/or inorganic growth
- Debt repayment capacity
- Dividend capacity
- Incremental debt capacity
- Increased organizational capacity
Illustrated available liquidity
AKER BP ASA Ambition to grow through M&A and organic portfolio development
Illustrative production profile and resource base
Production, mboepd Reserves and resources, bn boe
Target characteristics:
- High asset quality
- Operated assets
- Organic growth opportunities
- Liquids exposure
- Financially accretive
- Window of opportunity – majors considering strategic option on the NCS
AKER BP ASA Leveraging on a lean and nimble business model
Goal to become the benchmark independent E&P company, while maintaining the highest HSE standards
AKER BP ASA Creating the leading independent offshore E&P company
Unique platform for further growth
Unique capabilities
- Combining nimble business practices with IOC capabilities and 175 years of industrial experience
- Leveraging Det norske's improvement agenda and lean initiatives
World class asset base
Combined production of 122 mboepd and reserves of 723 mmboe
Predominantly operated portfolio with 5 operated hubs with significant development potential
Inventory of high quality non-sanctioned discoveries
Financially robust
- Diversification of production and cash flow
- Strengthened balance sheet
- Positioned for further growth
Appendix
ASSET PROFILE Skarv
Operated, 23.84% working interest
- Field developed with subsea wells tied back to Skarv FPSO
- Located 200 km offshore in Norwegian Sea at 350-450m water depths
- Oil export via shuttle tanker and gas export via Åsgard pipeline
- 2015 production of ~33 mboepd* (net), of which 50% are liquids
- Area development plan include Skarv Base Production and Snadd Development
- Exploration acreage in Skarv area represent a potential upside
| License: |
PL159, PL212, PL212B
PL262 |
Discovery
year: |
1998 |
| End 2015 2P reserves (net): |
75 mmboe* |
| Production start: |
2012 |
| Partners: |
Statoil, DEA, PGNiG |
ASSET PROFILE Ula / Tambar hub
Operated, ~80%* working interest
- Ula field is developed with three conventional steel platforms
- Located 270 km south west of Stavanger at 70m water depth
- Tambar field is developed with an unmanned wellhead platform remotely operated from Ula
- Oil export via Ekofisk to Teesside, all gas reinjected to reservoir
- 2015 production of ~9 mboepd** (net)
| License: |
PL019,
PL019B, PL065, PL019B, PL300 |
Discovery
year: |
1976 |
| End 2015 2P reserves (net): |
56 mmboe** |
| Production start: |
1986 |
| Partners: |
Dong |
ASSET PROFILE Valhall / Hod hub
Operated, ~36%* working interest
- Developed with 8 conventional steel platforms
- Major upgrades on Valhall field center with new processing and accommodation platform in 2013
- Located 300 km south west of Stavanger at 75m water depth
- Decommissioning of old field center and 2/4-G in 2016-2025
- Hod is developed with a wellhead platform remotely operated from Valhall
- Oil export via Ekofisk to Teesside, gas export through Norpipe to Emden
- 2015 production of ~19 mboepd** (net), of which 85% are liquids
| License: |
PL006B, PL033,
PL033B |
Discovery
year: |
1975 |
| End 2015 2P reserves (net): |
95 mmboe** |
| Production start: |
1982 |
| Partners: |
Hess |
ASSET PROFILE Greater Alvheim area
Operated, ~65%* working interest
- Production from the Alvheim field started in June 2008
- Oil is transported from the field with a shuttle tanker, and associated gas is exported to Scotland
- Additional resources added with subsea tie-in from Vilje (first oil 2008), Volund (first oil 2009) and Bøyla (first oil 2015)
- More infill wells are being matured to arrest the decline in production
| License: |
PL203, PL088BS, PL036C, PL036D, PL150,
PL340 |
Discovery
year: |
1998 |
| End 2015 2P reserves (net): |
117 mmboe |
| Production start: |
2008 |
| Partners: |
ConocoPhillips, Lundin, Core Energy (PL340),
Statoil (PL036D), PGNiG
(PL036D) |
ASSET PROFILE Ivar Aasen and Hanz
Operated, ~35%* working interest
- PDO for Ivar Aasen was approved on May 21, 2013
- Gross P50 reserves of 204 mmboe
- Production of ~67,000 boepd at plateau
- Final processing and export of oil and gas at the Edvard Grieg platform
- Oil export to Sture via the Grane pipeline
- Gas to St Fergus via the SAGE pipeline
- Project on track for first oil in Q4 2016
| License: |
PL001B, PL242, PL457 (Unit), PL028B (Hanz) |
Discovery
year: |
2008 |
| End 2015 2P reserves (net): |
71 mmboe |
| Production start: |
Q4 2016 |
| Partners: |
Statoil,
Bayerngas, Wintershall, VNG, Lundin,
OMV |
ASSET PROFILE Johan Sverdrup
Partner, 11.5733 % working interest
- Johan Sverdrup is one of the largest fields on the NCS
- PDO for Johan Sverdrup phase 1 was approved on August 21
- Recoverable reserves of 1.7-3.0 billion boe
- ~80% to be extracted from first phase investments
- Production to reach 315 380 mboepd at plateau (Phase 1)
- Oil export to Mongstad, gas export to Kårstø
- Project on track for first oil in Q4 2019
| License: |
PL265, PL501, PL502 |
Discovery
year: |
2010 |
| End 2015 2P reserves (net): |
303 mmboe |
| Production start: |
Q4 2019 |
| Partners: |
Statoil Petroleum AS (operator), Lundin Norway
AS, Petoro
AS, Maersk Oil Norway AS |