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 February 2015 • APA 2014 awards and Round 23 • Statoil Capital Markets Day • Gullkronen 2015
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Key NCS Takeaways February 2015
Announcement of Round 23 with 54 blocks in the Barents Sea and three in the Norwegian Sea. Deadline for applications December 2, 2015 (includes blocks in the previously disputed areas with Russia).
Awards in Pre-defined Areas (APA) 2014 with 54 licenses to 43 companies. This is down from APA 2013 (65 licenses and 48 companies).
Eldar Sætre appointed new CEO of Statoil.
Statoil Capital markets update: Reducing capex from USD 20 billion to USD 18 billion in 2015, stepping up improvement program by 30% to USD 1.7 billion per year from 2016. In particular modification cost is down (24% on operated fields). Capex reductions for field developments 18-47% (see topic of the month).
Statoil and the partners might delay the Johan Castberg development in the Barents Sea by postponing concept selection (DG2) from second half 2015 to third quarter 2016. Reasons for this is likely to be the low oil price regime, high cost estimates and uncertainty about nearby resources. Statoil did not prove up new significant resources in the license 2014. However, Lundin and the partners have an ongoing campaign in licenses south and east of Castberg.
Start-up of Bøyla, subsea tie-back to Det norske operated Alvheim field in the North Sea. Total investments are NOK 5 billion and 23 mmboe resources. Partners in Bøyla are Core Energy and Lundin. Also, the partners at Alvheim (Det norske, ConocoPhillips and Lundin) have decided to develop Viber-Kobra. These are two discoveries that were part of the PDO for Alvheim. Total investments are NOK 1.8 billion and 9 mmboe resources. Start-up is estimated to late 2016 or early 2017.
Rystad Energy analysis stating 10% reduction in oil investments and costs in 2015, Johan Sverdrup main contributor 2016 and a weak rise in 2017 and further growth. See press release January 30 for more details on oil price expectations and implications for Norway.
Rystad Energy Gullkronen awards 2015 (E&P): VNG (explorer of the year), PGNiG (business developer), Statoil with Gudrun (field developer) and Det norske with Alvheim (field operator).
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.