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 January 2015 • Falling breakeven price of shale • Repsol - Talisman transaction
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Key NCS Takeaways January 2015
Oil price continue dropping over the past month, down from 68 USD/bbl Dec 8 to 51 USD/bbl Jan 9 2015. Benchmarking of economic metrics for various sources of supply shows IRR and payback time for shale oil is more favorable than other projects. Additionally, breakeven for shale has been reduced. For more information see Insight and Rystad Energy US Shale Newsletter January 2015
Several start-ups at NCS: Valemon gas/condensate field operated by Statoil, Eldfisk II new platform operated by ConocoPhillips and Brynhild subsea tie-back to Pierce in UK operated by Lundin
Repsol announced acquisition of Talisman Energy for USD 8.3 billion. In terms of production the most important regions are North America, SE Asia and Europe. NCS assets include Yme (operated), Brage, Varg (op), Veslefrikk, Gyda (op). Bid represent 75% premium on the share price at that time and a 24% premium over the average share price of the last three months (similar to the BASF/Wintershall acquisition of Revus back in October 2008). Talisman Norway with operator organization in Stavanger, Repsol with office in Oslo
E.ON new corporate strategy to split the company, spinning off the E&P part and focus on pure downstream. E.ON with significant production in Russia through Gazprom. Possible divestment of NCS and UKCS. NCS assets include Skarv, Njord and Hyme
Several E&P companies reviewing strategic options due the macro circumstances, financial and/or ownership situation, e.g. North Energy, Noreco and Rocksource
Maria recoverable resources increased with 40 mmboe to 180 mmboe. Maria (oil) is in the Åsgard area in the Norwegian Sea. The owners are Wintershall (operator) 50%, Petoro 30% and Centrica 20%
New feature included in NCS BD Atlas: Deep dive of selected areas. This time with Njord area, including surrounding discoveries and prospect. Possible areas to be covered over the next months: Gohta/Alta-area, Oseberg (including discoveries and capacity), Quadrant 35 with fields and discoveries (Gjøa, Skarfjell and other)
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.