Det norske oljeselskap ASA Karl Johnny Hersvik, CEO Alexander Krane, CFO 17 March 2015, London
DET NORSKE Company snapshot Fully-fledged E&P company with 500 employees with sole focus on the Norwegian Continental Shelf Holds 79 licenses, whereas 35 as operator P50 reserves at year-end 2014 of 206 mmboe Including Sverdrup:…
DET NORSKE 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 very low break…
Our assets
PRODUCTION AND DEVELOPMENTS Concentrated in two core areas Utsira High Greater Alvheim area
RESERVES Year-end 2014 certified reserves of 206 mmboe Proven & probable reserves (P50), end 2014 Development in P50 reserves (mmboe) 279 484 Aasen incl. Hanz; 71 Byla; 15 Volund; 12 2014 RRR of 1.16x Vilje; 11 206 206 mmboe…
PRODUCTION GROWTH Developments to secure cash flow for decades 2015 production guidance of 58-63 mboepd Production cost of USD 8-10/boe Reserves Upsides Low breakeven cost development projects Ivar Aasen to start production in 2016…
ALVHEIM AREA (65%) The main production asset Net production from all company fields (boepd) The Alvheim area
BYLA (65%) Byla production commenced in January Byla and Greater Alvheim area 19 January, first oil flowed from the Byla field to the Alvheim FPSO (28 km) on schedule Hooked up with no shut-down on the Alvheim FPSO The first well…
ALVHEIM AREA DEVELOPMENTS (65%) Viper-Kobra and IOR projects Viper-Kobra Viper-Kobra and infill wells Recoverable resources of approx. 9 mmboe 90% is oil Estimated average rate of 7 500 boepd (gross) Development project commenced…
IVAR AASEN (35%*) Aasen development on track Overview 2012 2013 2014 2015 2016 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Ivar Aasen was discovered in 2008 Concept selection FEED studies Det norske is operator (34.8% working interest) PDO…
IVAR AASEN (35%*) Jacket to sail to Norway in Q1/Q2 Jacket completed below budget Jacket completed in January 2015, on time and below budget with no major incidents Jacket will sail from Sardinia to Norway in Q1/Q2 Jacket to be…
IVAR AASEN (35%*) Drilling of first geo-pilot in line with expectations Excellent performance** * 34.78% in PL 01B/242/457, 35% in Hanz PL 028B ** Source: Rushmore Benchmark data provided by permission of Det norske
IVAR AASEN (35%*) Construction of topsides 50% completed Construction on schedule Stacking of intermediate deck 30 January 90% 3D model review completed. Stacking of weather deck expected end of March Installations of major…
JOHAN SVERDRUP (11.8933%, preliminary WI) A game-changing development project Recoverable reserves of 1.7-3.0 billion boe 80% to be extracted from first phase investments Break-even oil price below USD 40/boe CAPEX of NOK 117…
JOHAN SVERDRUP (11.8933%, preliminary WI) Det norske did not sign the unit agreement Ownership interests in Johan Sverdrup should be distributed according to a combination of volume and value The proposal from the operator did not…
EXPLORATION Working to revamp our strategy Key ongoing activities 2015 drilling schedule Re-assessing the current exploration inventory Assessing prospectivity in all exploration areas Step-up in seismic processing Assessing the…
Financials & funding
FINANCIALS & FUNDING Liquidity and balance sheet position Headline figures end 2014 Debt instruments Cash position (USDm) 296 USD 3.0 billion RBL facility Bank debt (USDm) 2,037 Drawn USD 2.1 billion at year-end, borrowing Bonds (USDm)…
FINANCIALS & FUNDING Optimization of long-term capital structure Challenging macro environment Working to increase our financial flexibility and robustness by optimizing our capital structure Strong support from the bank syndicate…
FINANCIALS 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 exposure…
CAPEX GUIDANCE 2015 investment estimate: USD 950-1,000 million Ivar Aasen Johan Sverdrup* Drilling of geo-pilots, construction of topsides and living quarters, misc. project costs Ivar Aasen 15 % Alvheim area Alvheim: Three infill…
Outlook & priorities
OUTLOOK Cost efficiency programme Cost efficiency programme initiated as a response to challenging market environment Drilling & Well expenditure reductions starting to be realized Technology and Field Expenditures to be reduced by…
2015 PRIORITIES Drive execution and build optionality Drive execution Build optionality Deliver Ivar Aasen Continue to optimize the capital structure Maximise value from the Alvheim area Deliver on cost efficiency Optimize Johan…
Q&A
Appendix
FINANCIALS Statement of income Income statement (USD mill) Q4 2014 Q4 2013 FY 2014 Revenues 346 43 464 Production costs 44 17 67 Payroll and payroll-related expenses (10) 1 (17) Other operating expenses 23 1 49 EBITDAX 289 25 365…
FINANCIALS Statement of financial position Assets Equity and Liabilities (USD mill) 31.12.14 31.12.13 (USD mill) 31.12.14 31.12.13 Goodwill 1,187 53 Equity 652 524 Other intangible assets 940 444 Other provisions for liabilities incl.…
FINANCIALS Statement of cash flow Q4 2014 Condensed statement of cash flows Q4-2014 USDm One tax payment in December and tax refund for Pre-tax profit (197) 2013 exploration activity disbursed in Q4-2014 Taxes paid (109) Tax refund 191…
OUTLOOK 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 total CAPEX (gross)…
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