Daily Management Review

Aker BP to expand drilling of exploratory oil wells off the coast of Norway


09/13/2017


According to Aker BP’s CEO, the company is willing to aggressively cut costs and maintain margins in the wake of falling crude oil prices.



According to the Chief Executive of Norwegian oil company Aker BP, in 2018, it plans on drilling six to eight exploration wells, including four in the Barents Sea, off the coast of Norway.
One of the wells that will be located in the southeast Barents Sea and which shares a maritime border with Russia could contain significant new resources.
“Yes, it can, but it also (has) quite a bit of risk,” said Karl Johnny Hersvik, the company’s CEO. “It’s an interesting prospect.”
Incidentally, 40% of Aker BP is owned by Aker Capital and BP has another 30% stake in it. The company has a license to operate in these waters and will be partnering with Russia’s Lukoil and Norway’s Statoil for the explorations.
Although Statoil’s recent completion of the Korpfjell oil well was highly anticipated, it found only a relatively tiny quantity of gas, negating expectations of multi-million or billion-barrels discovery.
“The hype of the Barents Sea was too high... It’s not game over, but it’s worthwhile to cool it a bit,” said Hersvik.
This year, Aker BP plans on drilling eight exploration wells in Norway; this includes five partner-operated wells.
For 2017, its production outlook has been forecast in the range of 135,000-140,000 barrels of oil equivalents per day, said Hersvik; he was however clarified that these predictions are subject to revision and are dependent on a capacity increase at Lundin’s Edvard Grieg field.
Aker BP’s Ivar Aasen field sends oil and gas to the Edvard Grieg platform for further processing and export, and is thus dependent on it capacity.
Hersvik mentioned that he expects a “slight decline” in production in 2018 and 2019 compared with 2017.
In recent years, oil companies have had to dramatically slash their costs in order to compensate for falling crude oil prices.
Hersvik mentioned that there is still some room for cost cutting, including at Sverdrup.
The production of the Sverdrup field is expected to start in late 2019. As per estimates it holds an approximately 2-3 billion barrels of oil - the largest found off the coast of Norway in decades.
 
 
References:
http://uk.reuters.com







Science & Technology

Facebook may start production of its own microprocessors

Long-Term Alcohol Monitoring Could Be Possible With A New Injectable Chip Developed By U.S. Researchers

Sweden Now Has The First Electrified Road In The World

Over 270,000 Account Globally Banned From Twitter For Promotion Of Terrorism

Device Capable Of Hearing The Inner Voice Developed By Researchers

New mobile technologies will warn about natural disasters

The brewing industry welcomes blockchain

Asset-Sharing App Of Ryder Is Meant For Commercial Vehicles

Credit Suisse: China will become the leader in AI sphere

Five new technologies that will change the world

World Politics

World & Politics

Will Merkel accept Macron's plans for Europe?

USA and China are pushing North Korea to denuclearization

Germany's dilemma: Will the atomic energy win?

A Forceful Response To Syria Attack Will Be Given By U.S.: Trump

Is Trump’s Maximum Pressure Tactic On North Korea Succeeding Because Of China?

Why are Turkey-EU relations moving back?

Record-Breaking $39 Million raised for Rare Cancer Research in 2018 by Cycle for Survival

Hackers stole data of 5 million bank cards