Building DEA for the future

Financial and operational performance 

DEA delivered a strong financial and operational performance in 2016. Average daily production was 138 kboepd, up 20% from 2015. Revenues of USD $1.6 bn were virtually unchanged compared to 2015, despite lower commodity prices. EBITDAX of USD $856 m was slightly lower than 2015, but above the target set for 2016. 2P reserve replacement for 2016 was 286%, with audited reserves rising from 575 mmboe to 667 mmboe. 

Optimising the business model

Approximately USD $100 m of annual cost savings have been identified and are being implemented across the portfolio. 

DEA has successfully integrated E.ON E&P Norge, which it acquired in December 2015, with its legacy organisation in Norway. DEA now has an expanded base in Norway to pursue its long-term growth strategy on the Norwegian Continental Shelf. 

Executing key projects

L1 Energy is funding major organic growth projects in Norway, Egypt and Algeria.

These projects will support average annual production growth at DEA of approximately 15% between now and 2021. 

In Norway, DEA’s Norwegian gas development project Dvalin (formerly Zidane) was one of only 14 greenfield projects globally to reach FID in 2016. This project will establish DEA as an operator in Norway. 

In North Africa, DEA has benefited from  cost deflation of about 25% and is expecting to deliver West Nile Delta USD $400 m below budget. The project is ahead of schedule

for first gas, and will be online in the first half of 2017. 

In Algeria, first gas from Reggane is expected to come this year, approximately three months ahead of schedule. 

Capitalising on exploration in known plays

Exploration and appraisal activities show promise in the Alta discovery and other areas in the Barents Sea. DEA Norge has won two licences in the Norwegian Seaand North Sea, including one as an operator. The company continues to pursue selective exploration opportunities elsewhere in Northern Europe and secured two new licences in Denmark in 2016.

Bolt-on acquisitions

DEA increased its share of Dvalin from 40% to 55% and sanctioned its development by submitting the PDO (Plan for Development and Operation) to the Ministry of Petroleum and Energy. Additionally, DEA acquired shares in seven licences in the Njord area in the Norwegian Sea, including an additional 20% interest in the Njord field. The two projects have the potential to deliver attractive returns on the capital invested over the coming years.

Production 2016

Production 2016 pie chart: Egypt = 26%, Germany/Denmark = 28% and Norway = 46%

2P Reserves 667 MMBOE

2P Reserves 667 MMBOE pie chart: Germany/Denmark = 20%, Egypt & Algeria = 35% and Norway = 45%