World-class drilling on Valhall Flank West

The drilling programme on Valhall Flank West is now complete. Over the course of 11 months, the Maersk Invincible rig set 12 conductors, drilled nine wells and drilled 22,000 metres of reservoir.

“The jack-up rig alliance between Aker BP, Maersk Drilling and Halliburton has delivered world-class performances. We’re demonstrating that the strategy of creating increased value through alliances yields results,” confirms Aker BP’s SVP Drilling and Wells Tommy Sigmundstad.

Maersk Invincible arrived on the Valhall field in late June last year. After the 12 first large conductors were set, the rig drilled an average of one well per month. A total of nine wells have been drilled and completed. Three of these are multibranch wells.

“This would not have been possible without a strong alliance team capable of bringing out the very best efforts in each other. Compared with a comparable campaign completed outside the alliance, we see an improvement of 88 per cent in average rate of penetration and 186 per cent improvement in connection times. Congratulations go out to everyone involved,” says Sigmundstad.

First alliance project for the rig

The drilling programme on Valhall Flank West is the first project delivered through the alliance and Maersk Invincible.

“It all started with batch setting 12 conductors, where we had a fantastic learning curve and ended up 15 days ahead of our estimated time consumption. This learning curve has simply continued to grow. We’ve had some challenges, but they were resolved in a very good way because the whole team has pulled in the same direction. Now, as we look ahead, it’s important that we capture the lessons learned, so the alliance can continue to deliver good projects,” says drilling superintendent Anders Linndal.

2278 metres in one day

Last winter, the rig set a new record on the Norwegian Shelf when it drilled 2278 metres in a 12¼” section in 24 hours. Maximum drilling speed achieved by the rig on the record-breaking day was 280 metres per hour.

“I want to thank the entire drilling and subsurface team offshore and on land. We achieved this milestone because we’re constantly improving all parts of our performances. Behind this record lies a lot of hard work, fantastic craftsmanship and a strong team throughout the entire operation,” says assistant drilling superintendent Knut Eugen Svendsen in Aker BP.

“We push the envelope because we constantly manage to tackle bottlenecks together, as an alliance team,” says Tor Kvinnesland, Rig Manager on Maersk Invincible.

Maersk Invincible also held the previous drilling record in Aker BP, with 1953 metres drilled in a single day. That record was also set on a well on Valhall Flank West.

Important contribution to Valhall

Valhall Flank West came on stream in December 2019, just two years after the Plan for Development and Operation was submitted to the Norwegian authorities. The giant Valhall field has produced more than one billion barrels of oil equivalent since the field was opened in 1982. The ambition is to produce another billion barrels over the next 40 years. Valhall Flank West is an important contribution.

Maersk Invincible will remain on the field through the summer to assist in ongoing well stimulation work. Aker BP has been the first company in the world to use a new method of well stimulation offshore. The single-trip multi-frac technology (link), which yields faster and thus less costly stimulation, is used on Valhall Flank West.

Four wells have started producing so far. The remainder are expected to start up through the year.

All photos: Maersk Drilling

Development of the NOAKA area

Following the recently announced changes to the Norwegian petroleum tax system, Aker BP and Equinor have entered into an agreement in principle on commercial terms for a coordinated development of the licenses Krafla, Fulla and North of Alvheim (NOAKA) on the Norwegian Continental Shelf and have started preparations for submitting Plans for Development and Operation (PDO) in 2022.

The development of the area will have significant effects on the Norwegian supply industry. Total investments are expected to be more than NOK 50 billion.

Employment
The employment effect is estimated to 50,000 FTEs in the development phase, including ripple effects. In the preparation phase before the Plans for Development and Operation are submitted in 2022, the employment effect is estimated to approximately 2,000 FTEs. The preparations will start immediately, and contracts for concept studies are expected to be awarded shortly.

Karl Johnny Hersvik, CEO of Aker BP comments:

“The recently announced tax changes give strong incentives to develop the NOAKA area and through this agreement we can mature all the resources in the area towards an investment decision. This will potentially unlock more than 300 mmboe of oil and gas resources for Aker BP, and hence significantly contribute to our growth. This is important to us, and perhaps even more important for the supply industry and the Norwegian society.”

Field development
The NOAKA area is located between Oseberg and Alvheim in the Norwegian North Sea. The area holds several oil and gas discoveries with gross recoverable resources estimated at more than 500 million barrels of oil equivalents, with further exploration and appraisal potential.

This makes NOAKA one of the largest remaining field development opportunities on the Norwegian Continental Shelf. The partners in the licences are Aker BP ASA, Equinor ASA and LOTOS Exploration and Production Norge AS.

The plans for the area consists of a processing platform in the South operated by Aker BP, an unmanned processing platform in the North operated by Equinor and several satellite platforms and tiebacks to cover the various discoveries.

Synergies
The purpose of the commercial terms is to secure an optimal and fair allocation of cost and production between the discoveries and to align incentives and hence ensure good integration and synergies across facilities and licenses.

The concept will be further optimised prior to submitting the PDO, and the partnership has an ambition to further reduce cost with an integrated contract strategy.

Powered from shore
The partners share the ambition to develop NOAKA with a minimal carbon footprint. State-of-the-art technological solutions will be used to ensure high efficiency and low emissions.

The field will be powered from shore and an extensive use of digital solutions is expected both in the development and operations phase.

The company will also evaluate the opportunity of combining this with offshore wind, which could potentially enable power to be exported back to shore in the future.

Investor contacts
Kjetil Bakken, VP Investor Relations, tel.: +47 91 889 889
Lars Mattis Hanssen, Senior IR Professional, tel.: +47 99 459 460

Media contacts
Tore Langballe, VP Communications, tel.: +47 907 77 841
Ole-Johan Faret, Press Spokesman, tel.: +47 402 24 217

Disclaimer
The commercial agreement described in this statement is subject to approval by relevant parties. The final investment decision for a development of the NOAKA area has not yet been concluded.

About Aker BP
Aker BP is a fully-fledged E&P company with exploration, development, and production activities on the Norwegian Continental Shelf. Aker BP is the operator of Alvheim, Ivar Aasen, Skarv, Valhall, Hod, Ula and Tambar. The company is also a partner in the Johan Sverdrup field. Aker BP is headquartered at Fornebu, Norway, and is listed on the Oslo Stock Exchange under the ticker AKERBP. More about Aker BP at www.akerbp.com.

This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

First quarter 2020 summary

The first quarter of 2020 was an extraordinary quarter. Aker BP delivered strong operational performance and set a new production record. This was however overshadowed by the COVID-19 pandemic and the sharp drop in global oil prices. The company’s key priorities in this challenging situation are to safeguard its people, its production and its financial capacity.

Responding to COVID-19
Aker BP early on established a dedicated team to handle the company’s operational response to the COVID-19 pandemic. In close cooperation with employees, suppliers and authorities, this team has implemented measures to minimize the risk of infection and business interruption both onshore and offshore. This includes a wide range of practical measures like reduced offshore manning, physical distancing, travel restrictions and working from home. Supported by these measures, the company has maintained its production at full capacity.

First quarter results
In the first quarter, Aker BP’s net production was 208.1 (191.1) thousand barrels of oil equivalents per day (mboepd), and net sold volume was 207.5 (184.5) mboepd. These volumes represent a new all-time high for Aker BP, reflecting the continued ramp-up of production from the Johan Sverdrup field. Petroleum revenues did however decline by approximately 20 percent due to significantly lower realized oil and gas prices. This decline was partly mitigated by gains from the company’s oil price hedging program. Total income for the first quarter amounted to USD 872 (1,003) million.

Production costs for the oil and gas sold in the quarter amounted to USD 156 (154) million. Per produced boe, production cost was reduced to USD 8.7 (9.1). Exploration expenses amounted to USD 50 (85) million and included costs of the Nidhogg well which was concluded as a non-commercial gas discovery. Depreciation amounted to USD 277 (255) million, equivalent to USD 14.6 (14.5) per boe. Impairments amounted to USD 654 (0) million and were mainly caused by the sharp reduction in oil prices and the corresponding effect on investment plans and asset valuations.

Net financial expenses were USD 149 (67) million in the quarter, negatively impacted by the weaker NOK versus USD. Loss before taxes amounted to USD 414 million, compared to a profit of USD 424 million in the fourth quarter 2019. Tax income was USD 80 million, compared to a tax expense of USD 312 million in the previous quarter. The low effective tax rate for the first quarter mainly reflects the limited deductibility towards the special petroleum tax for financial items and impairments, as well as the currency-driven revaluation of the company’s tax balances. Overall, the company reported a net loss of USD 335 million for the quarter, compared to a net profit of USD 112 million in the previous quarter.

Investments in fixed assets amounted to USD 343 (490) million in the quarter, driven by field development activities across the company’s portfolio. First oil from Skogul was achieved during the quarter. Skogul is the subsea production well number 36 in the Alvheim area and has been delivered safely, efficiently and on schedule.

Updated investment program
In order to secure its financial optionality in response to the uncertainty caused by the COVID-19 situation and the sharp reduction in oil prices, Aker BP has made significant changes to its investment program which was presented at the company’s Capital Markets Update in February 2020. All non-sanctioned field development projects are put on hold, and several exploration wells are postponed. For 2020, this represents a 20 percent reduction in capital spend compared to previous guidance, with potential for further reductions in coming years. Production costs are also expected to be reduced by around 20 percent from previous guidance, as all non-critical activities are being postponed and the weaker NOK favourably impacts the cost level. The production guidance for 2020 remains unchanged at 205-220 mboepd. The longer-term production outlook will obviously be impacted by the company’s investment level.

Liquidity and financial position
Maintaining a strong financial position is a key strategic priority for Aker BP, and the company is continuously managing its capital structure and exposures to enhance flexibility and reduce cost and risk. During the first quarter, the company strengthened its liquidity by issuing USD 1.5 billion in new long-dated bonds at attractive terms. Furthermore, the maturity for USD 2 billion of the company’s bank facility (RCF) was in April extended by one year from 2024 to 2025. The company’s oil price hedging program has also been expanded. At the end of the first quarter Aker BP had USD 4.0 billion in available liquidity, with no significant debt maturities until 2022.

Dividends Aker BP’s ambition is to return a significant part of its value creation to shareholders through attractive cash dividends. However, given the weak oil market and the high uncertainty in the global economy, the Board has decided to retract the current dividend plan in order to retain financial flexibility and position the company for future value accretive organic and inorganic growth opportunities.

The Board has decided to pay USD 70.8 million (USD 0.1967 per share) in dividends in May 2020, representing one third of the previously guided amount. It is the Board’s ambition to maintain this level for the remaining quarters of 2020, implying total dividend payments of USD 425 million for the full year. Each quarterly dividend decision will however be subject to a holistic assessment of all relevant factors, including oil prices, the COVID-19 situation and the company’s financial position.

The company will revert with a new long-term dividend policy when market conditions allow.

Presentation
Report

Accelerated production start-up from the Ærfugl field

AkerBP, Ærfugl phase 1 project at Skarv. Seven Arctic, Campaign 6a, trip 3.

Operator Aker BP and partners report that production has started from the first Ærfugl phase 2 well in the Norwegian Sea – three years ahead of the original plan.

“The acceleration of production from Ærfugl Phase 2 means increased value creation for the Ærfugl joint venture, the supplier industry and the Norwegian society in the form of increased revenues. Thus I’m very pleased to mark this milestone. However the good news are offset by the fact that we are facing a global crisis that none of us have experienced before. Investments and explorations activities offshore Norway are put on hold. Tens of thousands of employees in our industry are currently at risk, says Kjetel Digre, SVP Operations & Asset Development in Aker BP.

As a respond to the dramatic change in the market situation, Aker BP has stopped all non-sanctioned projects, including the Hod redevelopment project in the Valhall area which was just about to be sanctioned prior to the dramatic turmoil.

“It is clear that the industry’s proposal for temporary adjustments in Norway’s tax regime to improve the industry’s cash flow in the short run – without reducing the total tax payments in the long run – will result in increased activity and new investment opportunities offshore Norway within the next 12 – 24 months,” adds Digre.

Optimized value creation

The Ærfugl field produces via Skarv FPSO approximately 210 km west of Sandnessjøen. It is one of the most profitable development projects on the Norwegian shelf with a break-even price of around USD 15 per barrel (converted from gas).

«The Ærfugl field development is adding five years lifetime extension to the Skarv FPSO and is an important part of the area development and value creation in the area, though the profitability will be dramatically reduced in the current oil price environment,” says Ine Dolve, VP Operations & Asset Development in the Skarv area.

The Plan for Development and Operation (PDO) for both phases was approved by the Ministry of Petroleum and Energy in April 2018. Phase 1, which develops the southern part of the Ærfugl field, consists of three new wells and will start-up in late 2020.

Phase 2 consists of an additional three wells in the northern part of the field. The original plan for start-up was 2023. Due to proceeded work to increase gas capacity on Skarv FPSO, the Ærfugl project team optimized the phase 2 scope and identified existing infrastructure to host the first “phase 2 well”.

In early November 2019 operator Aker BP and partners Equinor, Wintershall DEA and PGNiG approved the final investment decision (DG3) for Ærfugl Phase 2, which led to today’s announcement. The remaining two “phase 2 wells” will come on stream in 2021.

Excellent performance by three alliances

Reorganizing the value chain through strategic partnerships and alliances is an important part of Aker BP’s strategy.

“The Subsea alliance between Aker BP, Subsea 7 and Aker Solutions has demonstrated substantial improvements and increased value creation over several years. Now we see excellent deliveries from the alliances for the Ærfugl development. In addition the collaboration with Baker Hughes to enable the existing xmas threes to be reused at Ærfugl phase 2 has been key to enable the accelerated phase 2 start-up”, says Tom Storvik, Project Manager for the Ærfugl Field Development.

“The performance by the semi-sub alliance with Odfjell and Halliburton using the Deepsea Stavanger on Ærfugl, and the Modification alliance with Aker Solutions in collaboration with Kongsberg Maritime, has been very good as well. The early production start-up of from the first Phase 2 well shows how the alliances enable us to increase the value creation and to deliver in line with our ambitious improvement agenda,” Storvik adds.

FACTS ABOUT THE ÆRFUGL FIELD

The Ærfugl reservoir is mainly a gas reservoir that extends over 60 km and is 2-3 km wide. The project holds a total of around 300 million barrels of oil equivalent.
Ærfugl was first put on stream with the test producer A-1H in 2013 and has since produced via Skarv FPSO. Information gathered from this well proved good communication in the reservoir. This info was used to optimize the development of the Ærfugl structure with a total of seven wells.
Total investment costs for the Ærfugl project (phase 1 and 2) are around NOK 8 billion.
The total ‘life of field’ project has a break-even-price of around USD 15 per barrel (converted from gas). This makes the field development one of the most profitable being implemented on the Norwegian shelf.
The Ærfugl project has brought significant local ripple effects for local suppliers in the Helgeland region.

Call-off award for removal and disposal of installations in the Valhall area

Allseas has been awarded a call-off for removal and disposal of multiple installations in the Valhall area in the North Sea in the period from 2021 to 2026.

The work under the call-off comprises the removal and disposal of the Valhall DP- PCP- and Hod topsides and jackets.

Further Aker BP have invoked the option for the removal and disposal of the Valhall QP jacket and the 2/4-G jacket on the Ekofisk field. This option was associated with the 2017 call-off for the removal and disposal of the QP topside.

All installations will be removed by the world’s largest heavy-lifting vessel Pioneering Spirit.

The awarded call-offs relate to the long term (6 yrs + 2 + 2) frame agreement for Transport, Installation and Removal (T, I&R) executed by Aker BP and Allseas in 2017.

In June 2019, the topside of the original accommodation platform at Valhall (QP) was safely removed by Pioneering Spirit. This was the first of the three original structures (QP, PCP, DP) at Valhall to be removed as part of the modernization of the Valhall field centre.

Valhall and Hod have passed one billion barrels of oil equivalents (oil, gas and NGL) produced, more than three times what was expected at the opening of the field in 1982.

«Aker BPs ambition is to revitalize the Valhall area and to produce another billion barrels from the area. A safe and efficient removal of the original structures will be an important milestone on this journey. The remaining installations at the Valhall field centre and the Flank platforms will continue to produce for many years to come,» says SVP Projects in Aker BP, Knut Sandvik.

Expecting faster ramp-up to higher plateau production on Johan Sverdrup

Aker BP together with operator Equinor and other partners are pleased to announce that the North Sea Johan Sverdrup field expects to reach plateau production for the first phase in May. Due to higher plant capacity, plateau production will increase from around 440,000 barrels of oil per day to around 470,000 barrels per day.

Plateau production was previously expected to be reached during the summer. At the end of March, daily production had already exceeded 430,000 barrels of oil.

The Johan Sverdrup field came on stream on 5 October last year, more than two months ahead of the original schedule and NOK 40 billion below the original estimate for development and operation (PDO August 2015).

The break-even price for the full-field development is below USD 20 per barrel, and expected operating costs are below USD 2 per barrel.

Including the increased phase 1 plateau production, Johan Sverdrup will produce up to 690,000 barrels of oil per day at peak, scheduled in the fourth quarter of 2022.

Expected recoverable reserves in the field are 2.7 billion barrels of oil equivalent.

Each barrel of oil generates less than 0.7 kg of CO2 emissions, compared to the global average of 18 kg of CO2 per barrel. This result is mainly due to electrification of the Johan Sverdrup field.

First long-term smart contract signed for offshore maintenance

Aker BP and Framo have entered into a long-term contract for seawater lift pumps where compensation is directly linked to facility uptime. This is an important step in the modernization of the Norwegian shelf.

Trond Petter Abrahamsen, Director in Framo Services and Kjetel Digre, head of operations and field development in Aker BP. Photo credit: Lars Petter Larsen/Framo.

In 2018, the two companies and Cognite, a global AI software company enabling the full-scale digital transformation of heavy-asset industries, embarked upon a digital pilot effort for predictive maintenance of the seawater lift pumps on the Aker BP-operated Ivar Aasen field. The pilot has been a resounding success. Therefore, on Thursday, 5 March 2020, the companies signed a new maintenance contract which covers all of the five field centers where Aker BP is the operator.

The new smart contract has a duration of six years, with an option for an additional six years. This is a continuation of the pilot contract signed by Aker BP, pump supplier Framo and technology company Cognite during ONS in 2018.

This marks a milestone as Aker BP and pump supplier Framo are now taking the digital pilot work a step further to a long-term collaboration through Aker BP’s smart contract concept. Smart contracts are performance-based model agreements, where compensation is determined by the systems’ reliability and performance.

Since the first smart contract was signed a year and a half ago, large volumes of data have been sent back to the mainland. This became the start of an entirely new collaboration where Aker BP, Framo and Cognite have worked together in a joint project team.

Digital boards have now been developed based on sensor data from Cognite Data Fusion (CDF) and algorithms from Framo. A dedicated incentive model has been negotiated around these elements.

FACTS

Aker BP

Aker BP is a fully-fledged E&P company with exploration, development and production activities on the Norwegian Continental Shelf (NCS). Measured in production, Aker BP is one of the largest independent oil companies in Europe. Aker BP has a balanced portfolio and is the operator of the Valhall, Ula, Ivar Aasen, Alvheim and Skarv field hubs. The company is headquartered at Fornebu outside Oslo and has offices in Stavanger, Trondheim, Harstad and Sandnessjøen. The company has a total of appr 1700 employees.

Framo

Established in 1938 and is currently one of the world’s foremost suppliers of high-quality pump systems to both the global shipping and offshore industries. The company has a total of 1200 employees and has its headquarters at Askøy outside Bergen, along with eight branch offices. The supplier has local production of equipment at three different factories in the Bergen area. www.framo.com

Cognite

Cognite is a global industrial AI software-as-a-service (SaaS) company supporting the full-scale digital transformation of heavy-asset industries around the world. Their key product, Cognite Data Fusion (CDF), empowers companies with contextualized OT/IT data to drive industrial applications that increase safety, sustainability, and efficiency, and drive revenue.

Exploring the potential of robotics in the oil and gas industry

Aker BP and Cognite today announced a strategic initiative to explore how robotics systems can be used to make offshore operations safer, more efficient and more sustainable.

Cognite, a global industrial AI software-as-a-service (SaaS) company and Aker BP will do several tests using robots and drones on the Aker BP operated Skarv installation in the Norwegian Sea during 2020.

The robotics systems will be tested to gauge their performance in autonomous inspection, high-quality data capture, and automatic report generation. Tasks may include aerial and underwater inspections, responding to leaks, performing work that takes humans out of harm’s way, and providing onshore operators with telepresence on offshore installations.

Among the robots involved in the initiative is Spot, the quadruped robot developed by Boston Dynamics. Cognite and Aker BP have tested Spot’s mobility in simulated oil and gas environments to ensure that it can access locations in these facilities too difficult to access through traditional automation.

The Spot robot was showcased at Aker BP’s Capital Markets Update 11 February 2020.

“Digitalization will be one of the differentiators between the oil companies of the world, in order to be able to deliver low cost and low emissions. Our vision is to digitalize all our operations from cradle to grave in order to increase productivity, enhance quality and improve the safety of our employees. Exploring the potential of robotics offshore underpin our digital journey”, said Karl Johnny Hersvik, CEO of Aker BP.

“We’re excited to see innovative partners such as Cognite validating Spot’s ability to reduce risk to humans and provide value for the energy industry,” said Michael Perry, Vice President of Business Development at Boston Dynamics.

Cognite’s main software product, Cognite Data Fusion (CDF), will serve as the data infrastructure for the initiative. CDF, a cloud-based industrial data operations and intelligence platform, integrates seamlessly with existing IT and OT applications in the cloud, edge, and on-premise. CDF contextually enriches industrial data, providing an open, unified industrial data model that is easily accessible for humans and applications, enabling better analytical operations and data-driven decisions.

“The key to Aker BP and Cognite’s robotics initiative is that it combines industry-leading hardware and software. By ingesting data collected by robots into Cognite Data Fusion, Aker BP engineers will be able to see it in context with data from across the company’s operations and make data-driven decisions that improve efficiency and safety,” said Dr. John Markus Lervik, CEO of Cognite.

Aker BP strengthens its position in the Skarv area

Aker BP has entered into an agreement with PGNiG Upstream Norway AS to swap its 3.3 percent interest in the non-operated Gina Krog field and an 11.9175 percent interest in licence 127C, in exchange for a 5 percent interest and operatorship in licence 838 and a cash consideration.

Licence 838 contains the recent Shrek discovery near the Aker BP operated Skarv field. The transaction and the transfer of operatorship to Aker BP will enable an efficient development of this discovery as a tie-back to the Skarv FPSO. The licence also holds further exploration potential.

Licence 127C contains the Alve Nord discovery and the Alve NE prospect, which is also located in the Skarv area. Aker BP plans to drill an exploration well in the licence in 2020.

The transaction will provide Aker BP with a total cash consideration of up to USD 62 million, consisting of a firm payment of USD 51 million upon closing and an additional payment of USD 11 million contingent on a development of the Alve Nord discovery.
After this transaction, Aker BP will hold 35 percent interest in licence 838 and 88.0825 percent interest in licence 127C, while it will have fully divested its interest in the Gina Krog field. The effective date for the transaction is 1 January 2020.

The transaction is subject to approval by the Norwegian authorities.

Contact
Kjetil Bakken, VP Investor Relations, phone +47 91 889 889

About Aker BP
Aker BP is a fully-fledged E&P company with exploration, development and production activities on the Norwegian Continental Shelf. Aker BP is the operator of Alvheim, Ivar Aasen, Skarv, Valhall, Hod, Ula and Tambar. The company is also a partner in the Johan Sverdrup field. Aker BP is headquartered at Fornebu, Norway, and is listed on the Oslo Stock Exchange under the ticker ‘AKERBP’. More about Aker BP at www.akerbp.com.

This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Fourth quarter 2019 results

Fourth quarter 2019 marked the end of a year of strong progress and value creation for Aker BP. For the first time, the company’s quarterly total income exceeded one billion dollars, driven by record high production following the successful start-up of the Johan Sverdrup field, combined with continued strong performance from other fields. The company paid a dividend of USD 187.5 million (USD 0.52 per share) in the quarter.

Aker BP reported total income of USD 1,003 (723) million for the fourth quarter 2019. Production cost per boe produced in the quarter amounted to USD 9.1 (13.2). For the full year, production costs were USD 12.4 (12.1) per boe, in line with previous guidance. Exploration expenses amounted to USD 85 (70) million in the quarter. For the full year, exploration spend totalled USD 501 (359) million, below the latest guidance of USD 550 million.

Profit before taxes amounted to USD 424 (143) million. Tax expense was USD 312 (186) million. Overall, the company reported a net profit of USD 112 million for the quarter.

All major field development projects progressed according to plan, and first oil from both Johan Sverdrup and Valhall Flank West was achieved during the quarter. Total capex for 2019 was USD 1,667 (1,202) million, in line with the latest guidance of USD 1.6-1.7 billion.

The Board has resolved to pay a quarterly dividend of USD 212.5 million, equivalent to USD 0.5901 per share, in February 2020.

Investor contact
Kjetil Bakken, VP Investor Relations, tel.: +47 91 889 889

Media contact
Tore Langballe, VP Communications, tel.: +47 907 77 841
Ole-Johan Faret, Press Spokesman, tel.: +47 402 24 217