RYSTAD ENERGY PRODUCT HIGHLIGHTS • NCSAtlas: provides monthly up-to-date information on licenses and field activities on the Norwegian Continental Shelf, including area-by-area reviews, exploration drilling activity, reserves/resources benchmarks, production profile outlooks and monthly feature topics (e.g. asset transaction).
NCSAtlas Insights April 2015 • Shell and BG transaction • Impact of NCS project delays
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Key NCS Takeaways April 2015
Shell has made a cash and share offer to acquire BG for USD 70 billion, the offer is supported by the Boards of Shell and BG. For each BG share, seller will get paid 383 pence in cash and receive 0.4454 Shell B shares, the BG share owners will own 19% of the new combined company. In total, the offer represents a 52% premium to 90 days vwap.
BG started oil production on the Knarr field located approximately 50 km northeast of the Snorre field. The original plan for start of production was May 2014 and cost has increased by 36% from PDO submittal.
Snefrid Nord gas discovery in PL218 close to the Aasta Hansteen field development project. The well encountered a 105 meter gas column, resource estimated 31-57 mmboe.
Statoil confirmed that the Castberg and Snorre 2040 projects are postponed. Concept selection now in 2016 and investment decision in 2017. Tommeliten Alpha also indefinitely postponed by partners due to cost concerns.
SSB reported investment investments in the Norwegian E&P industry for 2015 to be 11.8% lower than in 2014. This is down from NOK 214 bn in 2014 to NOK 189 bn in 2015.
RWE-DEA is renamed DEA (Deutsche Erdoel AG) after LetterOne acquired the company. DEA’s board is headed by Lord Browne (ex BP).
MPE approved the PDO for Rutil field in the Gullfaks area. The field will be developed as a subsea tie-back and cost are expected to be NOK 4.6 bn with 11.8 bn Sm3 gas and 0.8 mm Sm3 condensate.
Centrica made three negative Drill or Drop decisions in licenses located in the area north of the Butch discovery.
Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy advisory and research products for E&P and oil service companies, investors and governments. We are headquartered in Oslo, Norway, with additional research teams in India. Further presence has been established in the UK (London), USA (New York & Houston), Russia (Moscow), for Africa as well as South East Asia.