Aabar reaches a 166% climb on higher production and oil prices in 2007
Posted: 04 February 2008
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Abu Dhabi-listed Aabar Energy has netted a 166% climb on revenues in 2007, the UAE-based E&P company has announced, citing higher production from the group’s continuing operations in Southeast Asia and increasing oil prices.
The preliminary results were released stating that net revenues for the 12 months to 31 December 2007 totaled Dh1.6 billion, an increase from Dh602 million for the full year 2006.
“The growth in the group’s production this year has been particularly satisfying at a time when oil prices have been increasing,” said David Woodward , Chief Executive Officer, Aabar, which operates in Thailand and Indonesia through its wholly owned subsidiary, Pearl Energy.
Net oil production through Aabar’s Pearl Energy averaged 18,898 barrels of oil per day (bopd) in the fourth quarter and 18,910 bopd over the full year from three fields in Indonesia and one producing concession in Thailand.
Aabar’s average realised oil price in the quarter rose to $72.86 per barrel compared with $61.07 in the third quarter 2007 and $56.56 in the October to December period 2006, the company said.
According to the report, operating profit rose 196% to Dh580 million from Dh196 million a year ago.
It also recorded a net profit to shareholders of Dh289 million for the 2007 period, with basic and diluted earnings per share of 32 fils. The preliminary results remain subject to audit.
All full-year figures have been restated to categorize drilling services division Dalma Energy LLC as a discontinued operation following Aabar’s announcement on 29 July regarding the sale of the wholly owned subsidiary. The divestment was approved by shareholders in September 2007 and has since been completed.
Two additional production platforms, Jasmine B and C, in Block B 5/27 in the Gulf of Thailand were brought into operation in the first six months of 2007 and accounted for the rise in total group production.
Construction of two further production platforms was nearing completion at the end of the year, ready for sail out and installation in and around the Jasmine production area in the first half of 2008.
“On the downside, costs associated with materials, equipment and services have increased significantly and we are focusing our efforts on controlling expenditure as we continue the development of the Jasmine field and a undertake an extensive exploration program in 2008,” Woodward said.
In Thailand , the team in Bangkok has substantially increased its exploration acreage in the Southeast Asian country and now holds working interest and operatorship in 10 Thai concessions, the company said.
Seismic acquisition programmes were completed on four new concessions in the latter half of 2007 and plans are underway for a significant exploration drilling program across the exploration portfolio this year.
In Indonesia , Aabar submitted a plan of development (POD) for the Ruby gas field, which is located in the Sebuku production sharing contract (PSC) offshore East Kalimantan , the company said.
The POD followed a successful appraisal drilling programme in early 2007 and forecasts a plateau production rate of 100 million standard cubic feet per day for four years followed by a five year tail period, with a total production volume over the nine years of 240 billion standard cubic feet.
Successful exploration drilling in the Tungkal PSC onshore Sumatra in April 2007 led to the Mengoepeh South discovery, which was put on stream in September and has slowed the ongoing decline in production from the main Mengoepeh field resulting from reservoir pressure depletion and limited aquifer influx. |
