Det norske oljeselskap ASA announces a good fourth quarter. The
development of the Ivar Aasen field is progressing according to plan.
The partners have agreed on a development concept for the Johan Sverdrup
field. Det norske participated in the Askja discovery in the North Sea.
The development of the Ivar Aasen field, where the operator Det norske
holds a 35 per cent ownership interest, is on schedule. The first cut of
steel has been made and construction of both the jacket and the platform
deck has commenced. The jacket is being built by Saipem at the yard in
Arbatax in Sardinia. The platform deck is being constructed by SMOE in
Singapore. Planned production start-up on the Ivar Aasen field is in the
fourth quarter of 2016.
The discovery in PL 457, located due east of the Ivar Aasen field, leads
to a more comprehensive development. The Ivar Aasen partnership has
signed a pre-unit agreement with the partners in PL 457. The agreement
will be finalised by June 2014.
The Johan Sverdrup field
In late 2013, Statoil, the pre-unit operator, presented its recommended
field development concept for the first phase. The formal decision was
made by the partnership on 13 February 2014. The Plan for Development
and Operation (PDO) is to be presented in early 2015, in anticipation of
the Norwegian Parliament's approval during the first half-year of 2015.
According to plan, start-up of oil production is expected in late 2019.
The production capacity during the first phase will be between 315,000
and 380,000 barrels of oil equivalents per day. Statoil communicated
gross field recoverable contingent resources between 1,800 and 2,900
million barrels oil equivalents. Preliminary estimated recovery factor
is about 60 per cent. However, the ambition is to increase this towards
70 per cent.
Total investments for the first phase are estimated to be between NOK
100 and 120 billion. This estimate includes all investments in
platforms, subsea installations, wells, pipelines and power from shore,
also including contingencies and provisions for market adjustments. The
partners are working continuously to lower the investment level for the
first phase. Phase 1 has capacity to produce more than 70 per cent of
the resources. Fully developed, the production capacity of the field may
be in the range between 550,000 and 650,000 barrels of oil equivalents.
From both a technical and an economical perspective, the anticipated
life of the Johan Sverdrup field is approximately 50 years.
Exploration activities
In Q4, Det norske participated in a discovery at Askja (PL 272).
Preliminary estimates indicate that the field contains between 19 and 44
million barrels of oil equivalents. Det norske has an ownership interest
also in the adjacent Krafla discovery, and a joint development with
Askja may generate a production of between 69 and 124 million barrels.
The drilling on Mantra in PL 551 was completed in Q4; no hydrocarbons
were identified in this prospect.
In Q4, Det norske entered into an agreement with Atlantic Petroleum
Norge AS concerning the sale of a 10 per cent interest in PL 659 in the
Barents Sea. The licence comprises the Langlitinden prospect, where
drilling commenced in January 2014. Det norske is the operator and will
retain a 20 per cent interest in the licence after this transaction. As
compensation, Atlantic Petroleum will carry part of Det norske's
drilling costs related to the exploration well.
In January, Det norske was awarded six new licences in the APA 2013
round, of which two as operator.
Gro G. Haatvedt has been appointed new Senior Vice President Exploration
in Det norske. She was previously the Senior Vice President for
exploration on the Norwegian shelf in Statoil.
Production
Det norske's four producing fields; Jette, Atla, Varg and Jotun,
produced an average of 4,328 barrels of oil equivalents in Q4.
Production from Jette accounted for 63 per cent. The average realised
oil price was USD 109 (110) per barrel.
Financials
Det norske oljeselskap ASA reported NOK 254 million (117) in revenues in
the fourth quarter. Exploration expenses were NOK 544 million (195),
contributing to an operating loss of NOK 1,182 million as compared to an
operating loss of NOK 358 million in Q4 2012. Net financial costs were
NOK 106 million (14). The net loss for the period was NOK 329 million
(47) after tax income of NOK 959 million (325).
The equity ratio as at end of Q4 2013 had been reduced to 30 per cent
(45).
Summary of financial results and operating performance:
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Find the report and presentation attached. A live webcast from the
presentation will be available at our website from 08:15 (CET),
www.detnor.no.
Contact:
Knut Evensen, VP Investor Relations, tel.: + 47 950 77 622.
About Det norske:
Det norske oljeselskap ASA (DETNOR) is an active exploration company on
the Norwegian Continental Shelf. Det norske's headquarters is in
Trondheim. The company also has offices in Oslo and Harstad. Det norske
is listed on the Oslo Stock Exchange with the ticker "DETNOR".
More about Det norske at www.detnor.no/en