ENGIE E&P in Norway reports strong operational performance with a 24 % increase in production and high regularity in 2015 compared to 2014.
The company delivers an operating profit of NOK 4 184 million.
“We delivered high operational performance across all business areas. It is particularly pleasing to see that both the total production as well as regularity was record high in 2015, and that we continue to capture cost reductions,” says Cedric Osterrieth, CEO of ENGIE E&P Norge.
2015 was also a positive year with regards to HSE performance. The Serious incident frequency (SIF) was as the previous year at zero. The accumulated result on Total recorded injury frequency (TRIF) shows a decrease compared to 2014, and ended on 2,6 pr. million work hours.
ENGIE E&P Norge’s total net production sold was 34.4 mboe in 2015, compared to 27.7 mboe in 2014. The underlying production growth of 24 %, compared to 2014, was mainly due to production from Gudrun that came on stream in April. In addition, production from Gjøa increased by 10 % from 2014 to 2015, to a level of 34 413 boe/d. The increase is due to excellent regularity along with utilisation of Vega spare capacity. Further contributions to production growth were delivered from the company’s other producing assets – Njord, Fram, Snøhvit and Hyme – which showed positive progress.
Two development projects
The company continued its efforts linked to two development projects in the Norwegian Sea. The Njord Future Development Project is progressing in order to decide the optimum future development of the Njord Area and to address the further structural upgrade requirements on the platform. In addition, further progress is being made on the Snilehorn Development Project, which most likely will be developed as a tie in to Njord A.
Operating profit impacted by low prices
The operating profit for 2015 was NOK 4 184 million, down from NOK 5 105 achieved in 2014. The reduction was primarily a consequence of significantly lower liquids and gas prices, where the average realised oil price in 2015 was 50 USD/boe compared to 95 USD/boe in 2014 and the average realised gas price was 18 EUR/Mwh in 2015 compared to 22 EUR/Mwh in 2014.
Capturing cost reductions
ENGIE E&P Norge aims to be sustainable at lower hydrocarbon prices, and continues to capture cost reductions and efficiency gains. In 2015, two savings programs were initiated: Budget Performance, initiated by ENGIE E&P, and Lean 2018, initiated from the ENGIE Group. The company will continue these efforts in the year to come, with a strong focus on operational and cost performance.
Link to ENGIE E&P’s Annual Report 2015: http://issuu.com/melvearoglien/docs/engie_annual_report_2015_issuu