Average entitlement production in Q4 was 41,300 barrels of oil equivalent per day (boepd). This is an all-time high for the Algerian Business Unit, due to El Merk having recently reached production plateau level.
While the technical work of Chissonga is complete, the project is not yet ready for sanction due to challenged economics in the current oil price environment and outstanding commercial issues.
Exploration in blocks 8, 16 and 23 has been concluded and Maersk Oil is exiting the exploration licences.
In Q4 of 2014, gross production from the Polvo field was 8,600 boepd with Maersk Oil share of 3,900 boepd. Floating Production Storage and Offloading unit (FPSO) uptime for the production system was 100 % in Q4.
Q4 entitlement production was 65,000 boepd. Over the quarter, production was higher than forecast due to well work and high uptime with few operational interruptions.
Maersk Oil commenced the drilling of the first well for its new platform, Tyra Southeast-B in the Danish North Sea, which is aiming to produce a total of 50 million barrels of oil equivalent. It is expected that production will begin at the end of Q1 2015.
The installation of the first modules for the Valdemar-Roar gas lift project began. The project is expected to boost production from the Valdemar platforms and the Roar platform.
Entitlement production in Q4 2014 was 4,000 boepd. Operated production in Q4 was 10,000 boepd, in line with expectations, with a production high of 12,000 boepd achieved. The production increase since 2013 reflects the progress of the Dunga Phase II development project, with 150 wells drilled out of a planned total of 198. Oil production through the first of the planned gathering lines, the K-Line, started during Q4.
A conceptual Field Development Plan for Swara-Tika in the Sarsang block was submitted to the authorities in January. Alignment was achieved in the Sarsang Joint Venture and agreement was achieved with the authorities regarding a model where gas handling was transferred to the Ministry of Natural Resources (MNR).
In late November 2014, the partnership unanimously supported Statoil as Operator for the large Johan Sverdrup project. In February 2015, the Plan for Development and Operation (PDO) for Phase 1 at a Maersk Oil cost commitment of USD 1.8 bn (Maersk Oil’s preliminary 8.12% share) was submitted to the Norwegian authorities. The equity number is not final as one of the partners did not agree to the unitization and the Norwegian authorities have been asked to settle the disagreement.
The average entitlement production share for Q4 2014 was 116,000 boepd and full year entitlement was 102,000 boepd, both higher than expected, mainly driven by lower oil price. The average operated production from the Al Shaheen field in the 4th quarter was 292,000 barrels of oil per day, slightly above the planned production, positively impacted by the restructuring and scope optimisation of planned shut-downs. The oil production average for the full year 2014 was 298,000 barrels of oil per day, 3% above target overall. The FDP2012 project is progressing to plan.
Average entitlement (net) production share in Q4 2014 was 44,000 boepd. Q4 showed an increase of 35% in production compared to Q3, mainly a result of completed planned annual maintenance activities during Q3 and early production from the new Golden Eagle field, which achieved first oil slightly ahead of schedule in November 2014. Production and operational performance to date from the new field has been positive with no major issues. Drilling is progressing on the first water injection well and the first subsea based production well is expected on line in Q1 2015.
US Gulf of Mexico
First Oil for Jack was achieved in December 2014. Ramp-up and testing of the first two production wells are ongoing. Both wells show a good production potential in excess of 10,000 bopd each (2,500 bopd Maersk Oil’s 25% share). Ramp-up is continuing during Q1 2015.