February 2016

NCS E&P Update

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• 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 2016

• Recent transactions
• Cost and break even reductions
• APA15 awards


Future Well Count


Goliat area insight



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Key NCS Takeaways Februray 2016


  • Hitec Vision decided to merge Spike Exploration, Pure E&P and Core energy into Point Resources with focus on exploration, development and production. The company will have 3.5 BN NOK available for investments with Roar Tessem as the CEO. The company has a total of 57 licenses including ~10’ boe/d in production from Brage, Snorre, Hyme & Bøyla and discoveries like Pil&Bue, Garantiana and Snilehorn.
  • The bondholders in Noreco Norway did not approve the sale of the company to Djerv Energi.
  • ExxonMobil acquired Dana’s 45% interest in Jotun.

Field Development

  • Goliat approved by PTIL to start production, but recent reports indicate that there are still outstanding issues to be resolved.
  • Statoil selected FPSO concept for Johan Castberg and have communicated reduced Break Even price from 80 $/bbl to 45 $/bbl. The PDO is planned to be submitted in 2017 with production start in 2022.
  • On the Capital Market Day (CMD) Statoil communicated a reduction in average break even prices for NCS non-sanctioned portfolio with start-up by 2022 from $70/bbl to $41/bbl.
  • Operators for the Jotun, Jette and Varg fields have applied for field shut down as production is no longer economically viable.


  • 56 licenses were awarded to 34 (assumes Point Resources is one company) companies in the APA 2015 round. 27 licenses located in the North Sea, 24 in Norwegian Sea and 5 in the Barents Sea. Two commitment wells, up from zero in APA 2014.
  • According to the NPD report “The shelf in 2015”, 56 exploration wells were spudded in 2015 adding resource growth of 138-377 mmboe. NPD expects 30 wells to be spudded in 2016.
  • Lundin communicated on their CMD that they will continue to explore and appraise the Southern Barents Sea area including Alta-3 re-entry and well test, Neiden re-entry and Filicudi exploration well located North-West of the Alta & Gohta discoveries.
  • Disappointing drilling campaign in 2015 in the Draugen, Njord & Pil area without any significant new volumes proven up. PL 700B Lorry as last well drilled being dry.

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