Background

The Norwegian Continental Shelf (NCS) is a maturing petroleum province, yet activity levels are still high and the shelf continues to be attractive to a large number of players present. These players vary strongly from each other - from Statoil and majors to small exploration-focused companies, having specific strategies and pursuing different opportunities, for example exploration only or tail-end production. As these companies optimize their portfolio according to their strategies, acquisition candidates become available. Rystad Energy has extensive experience in helping companies in screening for acquisition targets.

Approach

Rystad Energy’s proprietary database UCube includes production profiles for all fields and discoveries worldwide and estimated yet-to-find resources. When screening for acquisition targets or farm-in candidates, UCube, public sources, and our industry knowledge are utilized to identify a long list of potential companies, fields, discoveries or licenses based on client needs (e.g. exploration companies with large future capital expenditure commitments, discoveries with mainly oil reserves, exploration licenses with future drilling planned, etc.). Acquisition targets are thoroughly researched by Rystad Energy before a discussion with the client commences. A short list of opportunities is then prepared, which the client can pursue.

Result

The result is a detailed evaluation of opportunities and the impact each of them has on the client’s portfolio, especially when it comes to production, reserves, and cash flows. A sample illustration of this is shown to the right.

Transaction Opportunities with Possible Impact on Cash Flow and Production