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Maersk Oil to increase production by 50%

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Maersk Oil to increase production by 50% by 2020

09-Oct-2012

Today, at the A.P. Moller- Maersk Group's Capital Markets Day, Maersk Oil will unveil the individual components of its targeted 400,000 barrels of oil per day and disclose resources and reserves. APM Terminals will present its strategy to become the leading port and inland terminal operator.

Maersk Oil, part of A.P. Moller - Maersk A/S, today announced its reserves and resources figures for the first time after implementing the industry-wide Society of Petroleum Engineers' Petroleum Resources Management System (SPE). Going forward, Maersk Oil will publish SPE-compliant reserves and resources numbers every year.

Maersk Oil aims to increase its entitlement production by 50 percent to 400,000 barrels of oil equivalent per day (boed) by 2020 from a current level of 265,000 boed. The increase in production will come from maximising output from current assets and from field development projects, already sanctioned or very likely to be so in the near future.

"Our exploration activities have been successful and we will in coming years invest significantly in the development of the finds. We have the financial resources, the skills and the execution experience it will take to reach a production level of 400,000 bpd. Exploration activities will remain high in order to sustain the production level when we reach it," Group CEO Nils S. Andersen says.

Maersk Oil has a diverse portfolio of world class assets in attractive basins that play to the strengths of the company as well as a strong pipeline of opportunities from successful exploration. A stable production level of 400,000 bpd is achievable through the following:

• Four development projects have already been sanctioned with an estimated share of production of around 58,000 bpd and first oil during 2012-2014.

• Projects likely to be sanctioned in the future will add an estimated 160,000 bpd to Maersk Oil's increase towards 400,000 bpd a day.

• During this time period existing fields will have a natural decline.

• Maersk Oil will focus on executing development projects in the coming years which will increase capital expenditure (capex) from USD 1-3 billion per year in recent years to USD 3-5 billion per year going forward.

Maersk Oil expanded its exploration activities in 2007 and now has a portfolio which currently includes 120 prospects and leads. Maersk Oil will continue to spend USD 1 billion per year on exploration activities ensuring the production is sustainable on target beyond 2020.

Maersk Oil's Proved Reserves (1P) were 443 million barrels of oil equivalent by the end of 2011. Probable Reserves (2P including 1P numbers) and Contingent Resources (2C) were in total 1.384 billion barrels of oil equivalent by the end of 2011(1P reserves are included in the 2P numbers). Maersk Oil's Qatar operations are included as reserves until in 2017.

Also at the Capital Markets Day, APM Terminals presented its strategy to become the leading port and inland terminal operator by 2016 and reach USD 1 billion within 5 years.

"APM Terminals has an exciting terminal portfolio and pipeline for continuous expansion and we feel enthusiastic about the opportunities, which will provide value to us and our partners in the many countries in which APM Terminals operates," Nils S. Andersen says.

More details are available on www.maersk.com. For further information, please contact Group Communication A.P. Moller – Maersk on +45 3363 3505