THE BIG PICTURE A challenging, but necessary crisis Upstream costs have nearly tripled over the last 10 years, similar to oil prices 140 Full cycle cost vs brent oil price 130 120 Other 110 Tax 100 Production 90 Development…
THE BIG PICTURE Spending and costs are decreasing as a response E&Ps changed their plans mid-way through... ... including Det norske E&P spending estimates for next year vs. actuals Reached the ambition to reduce 2015 expenditures 20%…
RESERVES AND PRODUCTION OUTLOOK In a strong position to benefit in the longer term... Pro-forma P50 reserves, end 2014 Indicative production profile Johan Reserves Upsides Sverdrup Alvheim; 89 (pro-forma); 271 477 Vilje; 10…
IMPROVEMENT PROGRAMME ... but we continuously work to improve We are already a top performer... ... but we work improve Alvheim achieved top quartile performance in 2014, Initiating a long-term improvement programme to and Ivar Aasen is…
PRODUCTION AND DEVELOPMENTS High activity level with high performance OCT 14 JAN 15 APR 15 JUL 15 SEP 15
PRODUCTION AND DEVELOPMENTS Concentrated in two core areas Utsira High Greater Alvheim area
GREATER ALVHEIM AREA Excellent uptime and reliability record Alvheim area The Alvheim FPSO Alvheim is a mid-life operated FPSO producing 100 mboepd (gross) 300 million barrels of oil (gross) produced to date The Greater Alvheim…
GREATER ALVHEIM AREA Opportunities in the Alvheim area Alvheim area Alvheim area map Four new wells planned to come on stream in 2015, with three already producing and last planned for Q4 Future infill wells and developments More…
UTSIRA HIGH Ivar Aasen project on schedule The Ivar Aasen development The Ivar Aasen development concept Det norske-operated, 200 mmboe development with first oil planned for Q4 2016 Ivar Aasen Edvard Grieg Production to reach 67,000…
UTSIRA HIGH Ivar Aasen development progressing as planned Topside construction more than 70% complete High activity level offshore
UTSIRA HIGH Johan Sverdrup a giant in the making A game-changing development The Johan Sverdrup development Gross recoverable reserves of 1.7-3.0 billion boe, production to commence in Q4 2019 Break-even oil price below USD 40/boe…
EXPLORATION A portfolio ensuring long term reserve replacement Revamping the exploration strategy Overview of existing core and exploration areas 2015 exploration wells Discoveries in the Krafla area, Gina Krog East 3 Exploration Area…
FINANCING Sound balance sheet and financial flexibility Debt and undrawn credit (USDbn) Overview Raised USD 300 million subordinated PIK Toggle Undrawn credit Gross interest-bearing debt bond and USD 550 million RCF in Q2 2015 0,2…
SUMMARY Investment considerations Strong current production base and operational cash flow Assets in portfolio have capacity to lift oil production above 100,000 boepd after 2020 World-class project portfolio with low break even…
FINANCIALS & FUNDING 2015 guidance Financials CAPEX USD 950-1,000 million EXPEX USD 115-125 million Production cost per boe USD 8-10 per boe Operations 2015 production 58,000 63,000 boepd Ivar Aasen start-up Q4 2016 Ivar Aasen…
FINANCIALS Statement of income Income statement (USD mill) Q2 2015 Q2 2014 FY 2014 Revenues 337 74 464 Production costs 51 7 67 Other operating expenses 23 13 49 EBITDAX 264 54 365 Exploration expenses 25 21 158 EBITDA 239 33 208…
FINANCIALS Statement of financial position Assets Equity and Liabilities (USD mill) 30.06.15 30.06.14 (USD mill) 30.06.15 30.06.14 Goodwill 1 134 52 Equity 661 543 Other intangible assets 922 427 Other provisions for liabilities incl.…
FINANCIALS & FUNDING Debt overview RBL Facility RCF DETNOR02 DETNOR03 Type Bank Bank Bond Bond Security Secured, 1st lien Secured, 2nd lien Senior Unsecured Subordinated Facility Size 3,000 USDm1 550 USDm 1,900 NOKm2 300 USDm…
FINANCIALS & FUNDING Financial risk management Det norske closely monitors its risk exposure and assesses risk-reducing measures Alvheim Loss of Production Insurance in place Hedging program initiated Collars secured for USD/NOK…
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