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Image courtesy of Aker BP.

Aker BP said on Monday that it expects production to grow by at least 10,000 barrels per day this year.

The Norway-based company said its 2016 production was 118,200 barrels of oil equivalents per day (boepd), with about 80 percent being oil and 20 percent being gas.

The company expects its production to grow to between 128,000 and 135,000 boepd in 2017.

Average 2017 production costs are expected to be at $11 per barrel of oil equivalent.

Aker said that, with its current portfolio, it has the potential to produce 270,000 boepd in 2023 from both sanctioned and non-sanctioned projects.

That production level would represent a compound average growth rate of 12 percent.

Aker’s recorded P50 reserves rose to 711 million boe at the end of 2016 and contingent resources were estimated at 600 million boe at year-end 2016, an 84 percent year-over-year increase.

Aker has set its 2017 capital expenditure budget at between $900 million and $950 million.

Exploration expenses are expected to sit between $280 million to $300 million.

The company has estimated decommissioning expenditures for the year to be about $100 million to $110 million in 2017.

Aker said its active exploration strategy in 2017 will consist of four operated exploration wells and three partner-operated exploration wells.

Aker said that, over the course of 2017, it also plans to mature several projects and to submit three Plan for Development and Operation to Norway’s Ministry of Petroleum and Energy.

The company said it expects production at the offshore Norway Snadd and Storklakken projects begin in 2020.

Aker expects production at the Valhall West Flank, located in the Norwegian North Sea,   to start-up in 2021.

The company plans to have four operated rigs in 2017 including the Maersk Interceptor, the Transocean Arctic and the Maersk Invincible.

Aker said that preparations for a seven well drilling program from the injection platform at the Valhall field center are planned in early 2017.

The company plans to drill three of those wells over the course of 2017.

“I am very pleased with what the company has delivered during a period of low oil prices and challenging market conditions….The company is well-positioned for achieving our ambition of becoming the leading offshore, independent exploration and production company,” Aker BP CEO Karl Johnny Hersvik.