Wednesday , October 20 2021

OKEA: – We will be the most effective developer and operator


OKEA: – We will be the most effective developer and operator

Through the acquisition of Draugen and Gjøa, new owners and clear plans for the future, OKEA aims for continued growth on the Norwegian continental shelf.

-Drakan is a big and important springboard for implementing our strategy. OKEA will be the most effective developer and operator on the Norwegian continental shelf, says Erik Haugane, CEO of OKEA.

Important moments

OKEA surprised many when they bought Shell Norway's shares in Draugen and Gjøa this summer. According to Haugane, the acquisition will play a major role in the company's plans on the Norwegian continental shelf. Revenues increase by 5 billion, which is good now when the company is looking for new licenses and operating companies.

-There were two moments that were attractive to us. It was important to have access to cash flow from production. There are many others who also hunt, but it is important to have a strategic value at the bottom. For our part, we faced several major investments with many field developments.

Haugane says that the second moment is twofold. One would become operator for a prestigious field on the Norwegian continental shelf. The second was the expertise they receive from Shell employees now being transferred to OKEA.

-We take over an established, experienced and competent team in Kristiansund. Then we have an operations department that is among the largest on the Norwegian continental shelf. This is very important to us. We strengthen our credibility to become a partner, become licensed and participate in development cooperation, "said Haugane.

Will deliver a PDD per year

November 14-15, the Operator Conference in Stavanger will be held. The oil companies meet to set up the premises for the future on the Norwegian continental shelf. After a few tough years, it is really turning to the Norwegian oil industry. At the same time, the shelf changes dramatically. The big giants sell down, and new players come to great ambitions. OKEA is definitely in this line with its unique attitude and mind.

"We think the Norwegian shelf lacks players that are good at low cost, development and business. Most of the companies on the shelf are pure exploration companies. We see great opportunities and want to work in a different way with the suppliers. The ambition is to create a pioneer company. We do not want to be the same as everyone else.

According to the CEO, OKEA hunting is less than 100 million barrels. They want to develop the same cost as three times larger discoveries.

"We have no ambition to produce 500,000 barrels per year. We would rather be able to deliver a PDD a year when we get started. OKEA does not want 20 licenses that have much to look at. We concentrate on the results that have been made. It's enough of four to five pieces. We've been looking for a couple of discoveries, so we're very happy about TFO.

– Do not go in the same trap

This week, it became known that the Thai company Bangchak spends $ 933 million in OKEA. Haugane is very positive to the new ownership company.

-We get an industrial owner and my experience with this is very good. The most successful oil companies have powerful and long-term owners, and we get it in Bangchak. This is the first time that an Asian company enters an upstream company in the North Sea, and we are really looking forward to the cooperation.

Haugane believes in the Norwegian oil and gas industry in the coming years. However, the CEO notes that industry should not be in the same trap as before.

"If optimism and reinvestment will be a copy of what we did ten years ago, we will get a new step in a few years. I hope this future optimism gives room for actors and suppliers to think differently and work significantly more effectively and constructive than before.

This is also something of Espen Myra, VP Business Development in OKEA, to talk about during the company's lecture at the Operator's Conference on 14-15 November.

-Our ambition is that the relationship between OKEA and suppliers should be based on other premises than is the standard today. This can lead to faster decisions and simpler solutions. At the same time, we work with the same quality and safety as other suppliers, and our results on Draugen will turn out, "concludes Haugane.

Do you want to meet the oil companies that set the premises for future business on the Norwegian continental shelf? Read more about the Operator Conference here.

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