Aker BP: Company Culture, North Sea O&G and Skarv

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When you mention new projects, given that the geology is presumably well understood, it's not so much about exploration. Is it more of a financial consideration, whether it makes sense to drill an additional borehole?

Infrastructure is key. If you have infrastructure in place, like producing assets and subsea infrastructure, it makes sense to drill new wells, either for enhanced gas or oil recovery or new exploration wells near this infrastructure. Geological models are always developing with new technologies and perspectives.

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When you mention new projects, given that the geology is presumably well understood, it's not so much about exploration. Is it more of a financial consideration, whether it makes sense to drill an additional borehole?

[Sverdrup] is a good example. In the past, many wells were drilled in that area, but new technology and models led a discovery, just 10 meters from a well drilled 10 years ago. These things are always evolving. Aker is not a cost-leading company, but Aker BP excels at chasing revenue and new volumes, using new technology. Finding more barrels is valuable due to the tax regime in Norway, where costs are deducted at 78%, and the same tax rate applies. It's more beneficial to chase barrels than to chase costs.

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What would the decline rates be on something like this per year?

That's a technical question. It depends on the year. When I entered Skarv in 2018, the cessation of production was expected in 2026. However, with the Skarv satellite projects, it has been extended by 10 years. The decline rate on production is around 10% per year.

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