Aker BP increases 2021 capital spend following record quarterly production
Aker BP plans total capital spend in 2021 of $2.2-2.3 billion, an increase from the 2020 capital spend of $1.73 billion. Spending in 2020 was $500 million lower than originally planned due to measures taken in response to uncertainty caused by COVID-19 and lower oil prices, the company said in a Feb. 4 release.
Production for 2021 is expected to be 210,000-220,000 boe/d net to Aker BP. The company said it is continuing with final investment decision preparations for 10-12 new field development projects by end-2022. The largest being the development of the Krafla, Fulla, and North of Alvheim (NOAKA) area on the Norwegian Continental Shelf with Equinor (OGJ Online, June 11, 2020). In total, these projects cover more than 500 million bbl of new resources net to Aker BP. When completed, the projects are expected to increase company production by 70% to more than 350,000 boe/d by 2028.
For fourth-quarter 2020, the company reached record high production of 223,100 boe/d, up from 201,600 boe/d in the previous quarter. Full-year 2020 production was 210,700 boe/d, 35% higher than in 2019.
The Aerfugl phase I development was completed and started production in fourth-quarter 2020, and production from Johan Sverdrup increased by 12% in the quarter to 59,600 boe/d net to Aker BP (OGJ Online, Nov. 13, 2020; Nov. 18, 2020). The total processing capacity for Johan Sverdrup phase 1 was increased to 500,000 b/d from 470,000 b/d during the quarter and is expected further increase to 535,000 b/d during 2021.
Net profit in the fourth quarter was $129 million. Full year 2020 net profit was $45 million, compared to $145 the previous year.