Maersk Results Presentation Deck slide image

Maersk Results Presentation Deck

A.P. Moller Maersk Group - Interim Report 02 2015 Exploration costs were USD 109m (USD 172m) with the com- pletion of three (three) exploration/appraisal wells. Maersk Oil continues to evaluate the costs and benefits of its exploration activities given the oil price expectations. The decrease in tax of USD 463m to USD 272m was mainly due to lower current tax related to Denmark, Qatar and Algeria be- cause of the lower average oil price. Cash flow from operating activities was USD 611m (USD 718m); lower than last year mainly due to the lower oil price. Cash flow used for capital expenditure was USD 502m (USD 546m). PRODUCTION The increased entitlement production was a result of a higher production share in Qatar where the decreased oil price gives more barrels for cost recovery as well as strong operational Entitlement share of production Thousand barrels of oil equivalents per day (boepd) 160 140 120 100 80 60 40 20 0 92 120 Qatar Contents 43 77 57 64 36 29 4 6 6 UK Denmark Algeria Kazakhstan US 02 2014 02 2015 4 Brazil performance in particular in the UK and production from the new fields Golden Eagle in the UK and Jack in the US. DEVELOPMENT The development project at the Al Shaheen field offshore Qatar is progressing as planned. Maersk Oil Qatar is now more than half way through the drilling programme planned to reach a total of 50 wells. A plan for development and operation at a cost level of USD 1.8bn (Maersk Oil's share) for the Johan Sverdrup field offshore Norway was submitted in 01 2015 and final sanctioning by au- thorities is expected in 03, pending approval by all partners of the revised equity split from the authorities, which increased Maersk Oil's share from 8.12% to 8.44%. The high-pressure, high-temperature Culzean gas field offshore the UK reached internal project approval in June 2015. Partner ******** www approval was received in July 2015 and sanction from the au- thorities is expected in the second half of 2015. In Angola, the Chissonga project remains challenged due to the low oil price. Negotiations with authorities, partners and con- tractors are ongoing to make the project viable. EXPLORATION Three exploration wells were completed in Kurdistan, Kazakh- stan and Denmark. Two of the wells, the Kurdish Swara Tika East well and the Danish Xana well discovered hydrocarbons and potential commercial developments are being assessed. The third well, located in Kazakhstan, came out dry. In Brazil, Itaipu and Wahoo are under commercial evaluation. Decision of extension of exploration license or field develop- ment is expected by the end of 2015. MAERSK OIL The large field development plan, FDP2012, of the Al Shaheen field off shore Qatar is progressing as per plan. 14/42
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