October 26, 2022 [Reuters] – Norway’s giant Johan Sverdrup oilfield is expected to start Phase 2 production in December, Aker BP (AKRBP.OL), a partner in the Equinor-operated (EQNR.OL) field, said on Wednesday.

Phase 2 is expected to increase the field’s production capacity by 220,000 barrels of oil equivalent per day (boepd) as the European Union’s ban on Russian seaborne crude imports comes into an effect in December.

The company revised its oil and gas guidance to 410,000-420,000 boepd from 410,000-435,000 boepd in its quarterly report.

“Our previous guidance was based on Phase 2 starting in October. As this is no longer relevant, we have revised our guidance,” Chief Executive Karl Johnny Hersvik told reporters. “We now expect the Phase 2 to start in December.”

In June, Aker BP closed a deal to acquire upstream assets from Sweden’s Lundin Energy, including a 20% stake in Johan Sverdrup, making Aker BP the second-largest listed oil company in Norway after state-controlled Equinor.

Aker BP reported total earnings before interest and taxes (EBIT) of $3.96 billion for the third quarter following the consolidation of Lundin’s assets.

It did not provide comparable figures for the previous quarter. Aker BP’s operating profit excluding Lundin’s assets stood at $849 million in the third quarter of 2021.

Aker BP kept its quarterly dividend unchanged at $0.525 per share, but reduced its 2022 capital spending guidance to $1.2 billion from $1.3 billion.

Reporting by Nerijus Adomaitis

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