Afren has seven KPIs which monitor the Company’s growth strategy.
2009 benefited from a full year of production from Okoro in
Nigeria as well as CI-11 and the Lion Gas Plant in Côté d’Ivoire.
Field decline and the end of cost recovery on Okoro is expected to be offset by the Ebok start-up, with further growth in 2011 and beyond.
Reserves increases have been significant, mostly driven by
the recent Ebok appraisal programme. The ratio is calculated using the last three year’s reserves additions over the period’s production.
With a significant drilling campaign planned and relatively low risk prospects included, 2010 should maintain a relatively high reserves replacement ratio.
Average realisations increased by 40% following the low oil price in late 2008 and early 2009. The recovery in the second half of 2009 significantly increased the average price. This excludes the impact of hedging, which averaged a gain of US$7.40 per hedged barrel.
Following the move to export Okoro oil from the Ima terminal and the larger parcels available, we expect average realisations compared with Brent to improve by around US$2-3 per barrel due to lower lifting and freight costs.
2009 benefited from a full year of production from both CI-11 and Okoro and the results of the cost reduction strategies implemented.
Higher average prices and continued strong performance from Okoro, coupled with the start-up of Ebok production, should lead to another strong performance in 2010 and beyond.
Cost reduction initiatives and plateau production combined to produce a significant reduction in costs per barrel.
Although production decline will add pressure to the rates, further cost reduction initiatives and the higher reserves should enable the rates to remain relatively stable looking ahead. Our aim is to ensure the most efficient and cost-effective practices are imbedded that focus on ensuring safe and environmentally aware operations.
Normalised profit was significantly better due to a full year of operations with lower overheads and exploration costs.
With continued good production from Okoro and the start-up of Ebok, normalised profit is expected to continue to grow. Afren is aiming for year on year growth into the foreseeable future with a flat oil price outlook.
We monitor our safety performance using well recognised industry KPIs, namely total recordable injury rate (TRIR) and lost time injury frequency (LTIF). Both KPIs showed improved performance in 2009 over the 2008 results.
We will use industry benchmarks to target further performance improvements during 2010