Aker BP Business Model Canvas

Identify, acquire and interpret 2D/3D seismic to high‑grade NCS prospects, supporting Aker BP’s drilling program that underpinned ~240 kboe/d production in 2023 and ~600 mmboe 2P reserves by end‑2023. Drill exploration and appraisal wells to quantify resources and mature discoveries into commercial projects, targeting >100% reserve replacement. Maintain a balanced prospect inventory and prioritize high‑value tie‑backs to optimize capital deployment.

Field development execution at Aker BP aligns concept select, FEED and EPC to bring resources onstream efficiently, targeting accelerated first oil and tight capital discipline; in 2024 the company focused on shortening sanction-to-first-oil cycles across portfolios. Standardized subsea and platform solutions drive repeatability and lower unit costs, enabling faster delivery. Supply chains and fabrication schedules are managed tightly with integrated planning and long-lead procurement controls. Robust HSE programs and strict regulatory compliance are enforced throughout execution to protect people, assets and licence to operate.

Core asset base concentrated on the Norwegian Continental Shelf, with the company reporting over 1.0 billion boe in 2P reserves and production around 260 kboe/d in 2024. High-quality reservoirs benefit from Norway’s supportive fiscal and regulatory regime, enabling attractive recovery economics. A diversified portfolio spans early development to mature fields, lowering operational and timing risk. The resource base underpins multi-decade production visibility and value generation.

Platforms, subsea systems, wells and tie-backs enable efficient field developments by sharing infrastructure and reducing standalone capex; access to existing hosts and pipeline networks materially improves project economics. Reliability of critical equipment drives uptime and revenue continuity, while modular platform and subsea designs support phased expansions and faster tie-ins.

Standardized developments and tie-backs have driven Aker BP’s breakeven down to about USD 25/barrel while supporting ~230 kboe/d production in 2024, lowering per-unit investment intensity.

Relentless operational excellence sustains >98% uptime on key fields, keeping lifting costs low and volumes steady.

Capital discipline—NOK ~19.5bn capex in 2024—enhances returns across cycles and a competitive cost base cushions cash flow against price volatility.

Aker BP’s strong HSE systems and adherence to Norwegian standards yielded one of the lowest industry injury rates in 2024, underpinning safe operations. Stable operations delivered predictable volumes, with group production averaging about 245,000 boe/d in 2024. Infrastructure redundancy across fields and subsea systems boosts resilience against outages. The company is a trusted partner for long-term contracts with major European buyers.

Long-term offtake contracts with refiners, utilities and traders provide Aker BP with multi-year volume visibility and credit assurance, aligning quality specs and delivery points to reduce nomination risk; these agreements supported stable sales of roughly 300 kboe/d in 2024, underpinning predictable cash flow and fostering repeat business with counterparties on multiyear terms.

Joint venture coordination is driven by active partner engagement via steering committees and detailed annual work plans across Aker BP’s portfolio of over 30 Norwegian licences (2024), ensuring alignment on delivery and budgets. Transparent cost and performance reporting is standard, with monthly reconciliations and KPI dashboards shared across partners. Decisions on project scope and schedules are taken collaboratively through joint technical and commercial fora, and HSE and sustainability targets are set and tracked jointly to meet Norway’s regulatory standards.

Pipelines and terminals are the primary delivery route for crude, gas and NGLs on the NCS, leveraging the Gassco-operated system and over 8,000 km of subsea pipelines. Aker BP accesses this via shared infrastructure and capacity bookings under established transport agreements, ensuring reliable, scalable delivery. This network integrates directly with buyers’ downstream assets and export terminals to optimize offtake and value.

Direct B2B sales target European refiners, utilities and commodity traders, leveraging Aker BP’s ~270 kboe/d average production in 2024 to supply crude and condensate under master agreements and competitive tenders. Contracts include bespoke quality specs and delivery windows per buyer, with pricing tied to benchmarks and lifted via FPSO/pipeline logistics. Relationship-driven account management supports high repeat transaction rates and multi-year renewals.

European refiners purchase crude grades that fit their slates and prioritize reliable, quality-consistent supply; Aker BP’s NCS volumes are valued for tight quality specs and low sulfur content. They seek multi-year offtake and performance assurances—contracts tied to pipeline integrity and consistent API/Sulfur parameters reduce blending costs. Stable NCS governance and standards underpin long-term refinery planning and margin predictability.

Gas utilities and power producers buy pipeline gas often indexed to TTF or hybrid contracts; TTF averaged about 40 €/MWh in 2024, reinforcing hub-linked pricing. They require security of supply and balancing flexibility amid tight European gas markets. ESG performance and transparent, reliable counterparties are increasingly decisive in procurement and contracting.

Development capex for wells, subsea and facilities drives Aker BP’s capital structure, with 2024 capex guidance around NOK 22 billion. Tie‑backs and brownfield upgrades account for the majority of spend, reducing unit development cost versus greenfield projects. Investments are phased and milestone‑linked to optimize cash flow and value delivery. Long‑term supplier frameworks and preferred‑vendor contracts help control costs and schedule risk.

Operating expenditure centers on offshore operations, maintenance and logistics where Aker BP reported unit opex of about USD 6.3 per boe in 2024, with energy, chemicals and personnel constituting the bulk of spend. Investments in digital tools and predictive maintenance cut routine OPEX and crew hours, supporting a reported single-digit percent opex decline in 2024. Aerated focus on uptime improvements lowered unit costs by improving throughput and reducing unplanned downtime.

Primary revenue from crude oil sales is indexed to Brent, which averaged about 86 USD/bbl in 2024, forming the pricing basis for Aker BP receipts. Quality differentials are applied to reflect grade and API/Sulphur characteristics across North Sea streams. Sales mix combines term contracts for stability with spot sales for upside, while volumes are driven by field production profiles—Aker BP operated roughly 200 kboe/d in 2024.

Natural gas sales are contracted primarily to TTF-linked or hybrid index structures, securing market-reflective pricing while allowing partial oil-linked stability. Long-term contracts include flexibility options and swing volumes to optimize deliveries and capture seasonal price spreads via nominations. Base-load demand from industrial and power customers provides stable cash flows supporting capital allocation and debt service.