Sunday , April 11 2021

OKEA: – We will be the most effective developers and operators



OKEA: – We will be the most effective developers and operators

With the acquisition of Draugen and Gjøa, new owners and a clear plan for the future, OKEA aims for further growth on the Norwegian continental shelf.

-The Dragon is a big and important stepping stone for implementing our strategy. OKEA will be the most effective developer and operator on the Norwegian continental shelf, said Erik Haugane, CEO of OKEA.

Important moment

OKEA surprised many people when they bought Shell Norway shares in Draugen and Gjøa this summer. According to Haugane, the acquisition will play a major part in the company's plan on the Norwegian continental shelf. Revenues increased by five billion, which is good now because the company is looking for new licenses and operating companies.

– There are two interesting moments for us. It is important to access cash flows from production. There are many other people who also hunt, but it is important to have strategic value at the bottom. For our part, we are faced with several large investments with many field developments.

Haugane said that the second moment was doubled. One of them is to become an operator for the prestigious field on the Norwegian continental shelf. The second is the expertise they receive from Shell employees who are now transferred to OKEA.

-We take over an established, experienced and competent team in Kristiansund. Then we will have an operations department which is one of the largest on the Norwegian continental shelf. This is very important for us. We strengthen our credibility to become partners, get licenses and work together in development, "Haugane said.

Will give one PDD a year

November 14-15 Operator Conference will be held in Stavanger. Oil companies meet which sets a place for the future on the Norwegian continental shelf. After a few difficult years, everything really turned to the Norwegian oil industry. At the same time, the shelves change dramatically. Big giants sell down, and newcomers come to big ambitions. OKEA is clear in this line with a unique approach and mindset.

"We feel that the Norwegian Shelf does not have good players in terms of low costs, development and operations. Most companies on the shelves are pure exploration companies. We see great opportunities and want to work differently from suppliers. His ambition is to create a pioneer company. We don't want to be the same as other people.

According to the CEO, the hunt for OKEA found less than 100 million barrels. They want to develop a break-even cost that is the same as the discovery three times greater.

"We don't have the ambition to produce 500,000 barrels per year. We would rather be able to give one PDD a year when we stand and walk. OKEA does not want to have 20 licenses to see. We concentrate on the findings that have been made. Enough with four to five parts. We have been looking for several discoveries, so we are very happy with TFO.

– Don't enter the same trap

This week it was discovered that the Thai company Bangchak spent 933 million dollars in OKEA. Haugane is very positive to the new ownership company.

-We got the industrial owner and my experience with this was very good. The most successful oil companies have strong and long-term owners, and we get them in Bangchak. This is the first time an Asian company has entered an upstream company in the North Sea, and we look forward to this cooperation.

Haugane believes in the Norwegian oil and gas industry in the coming years. But the CEO recalled that the industry did not have to enter the same trap as before.

"If optimism and reinvestment would be a copy of what we did ten years ago, we will get a new leap in a few years. I hope that this optimism for the future provides space for actors and suppliers to think differently and work far more effective and constructive than before.

This is also something from Espen Myra, VP Business Development at OKEA, to be discussed during the company's lecture at the Operator Conference, November 14-15.

Our ambition is that the relationship between OKEA and suppliers must be based on a place other than today's standards. This can result in faster decisions and simpler solutions. At the same time, we will operate with the same quality and safety as other suppliers, and our results at Draugen will be proven, "Haugane concluded.

Do you want to meet with an oil company that organizes a place for future business operations on the Norwegian continental shelf? Read more about Conference Operators here.


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