Production lower for one Norwegian energy company

After raising its guidance for the year, Norwegian producer AkerBP sees steep decline from one of its largest assets.
By Daniel J. Graeber  |  Oct. 12, 2017 at 9:43 AM
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Oct. 12 (UPI) -- Even though some of its assets posted new production, AkerBP said Thursday its third quarter production was lower than last year by 7.5 percent.

Aker BP, a merger of Norwegian energy companies and a subsidiary of BP, said total third quarter production was 131.1 million barrels of oil equivalent per day, down from the 142.7 million barrels of oil equivalent per day reported during the same period last year.

Two fields -- Gina Krog and Volund -- went into production this year. Of the 11 fields for which the company reported production, nine posted lower output than third quarter 2016. By volume and percent, the Alvheim area in Norwegian waters posted the biggest decline at 14.5 million barrels of oil equivalent per day, or 23 percent.

Most of the company's output came from the Alvheim license area, which draws oil using a floating production facility from four fields in the greater region.

The company did not respond to a request from UPI for clarification or explanation of the third quarter 2017 figures. In July, it raised its guidance for output but lowered it for production costs.

One of the first companies out of the gate with second quarter results, the company said production costs were $121 million, up from $39 million, though total income of $595 million was nearly twice what it was last year, mainly because of the tie up with the Norwegian subsidiary of BP.

Aker BP holds stakes in some of the more promising prospects offshore Norway, including the giant Johan Sverdrup oil field. Production in June began at the Gina Krog field offshore Norway and the company said it expected output to accelerate during the year at the larger Edvard Grieg field. No figures were reported for Edvard Grieg for the third quarter.

The company posted mixed results from its latest drilling efforts offshore Norway.

Production figures from Norway, one of the leading suppliers to the European economy, were lower than expected in August, the last full month for which data are available.

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